How Banks Price Loans for LBOs: an Empirical Analysis of Spread Determinants *
نویسندگان
چکیده
This paper examines which factors determine the pricing of loans for LBOs, using a worldwide sample 11,111 closed in 2000–2016 period. Our findings are consistent with hypotheses that LBOs extended to borrowers market- versus bank-based financial systems differently priced, and law institutional characteristics important determinants spreads deals market-oriented countries. Despite LBO loan differing significantly normal crisis times, market-based have higher than those where banks play major role. results also support hypothesis tranching as mechanism reducing by completing markets mitigating informational asymmetries. Finally, robust convex relationship between spread maturity is found, suggesting market competition investors standard, medium-term maturities.
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ژورنال
عنوان ژورنال: Journal of Financial Services Research
سال: 2021
ISSN: ['0920-8550', '1573-0735']
DOI: https://doi.org/10.1007/s10693-021-00355-y