Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 23, 2022 erstellt
Beschreibung:
Syndicated loans integrate bank monitoring with risk sharing similar to corporate bonds. Consistent with this argument, we find that firms use more loans and fewer bonds, and increase capital expenditures, after initial access to the syndicated loan market. The growth of collateralized loan obligations (CLOs) further strengthens the development of the syndicated loan market by facilitating information production and mitigating market segmentation. Loans with greater CLO ownership have lower interest rate spreads. This effect is stronger when CLO triple-A tranches are larger and when borrowers are low-rated and more opaque. CLO ownership is also positively associated with borrowers’ post-loan investments