Arbeitspapier
Ownership concentration and performance of deteriorating syndicated loans
Regulation and capital constraints may force banks and collateralized loan obligations (CLOs) to sell deteriorating loans, potentially hampering renegotiation and amplifying the initial negative shock to the borrower. We show that banks and CLOs sell downgraded loans to mutual funds and hedge funds. The reallocation of loan shares favors the syndicate's concentration, increasing lenders' incentives to renegotiate. However, syndicates remain less concentrated when potential buyers experience financial constraints and subsequently loans are less likely to be amended and more likely to be downgraded even further. Our findings indicate that existing regulations may amplify shocks to credit quality during periods of generalized distress in the financial system.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. WP 2021-10
- Klassifikation
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
-
Debtor Concentration
Credit Quality
Leveraged Lending
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Giannetti, Mariassunta
Meisenzahl, Ralf R.
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of Chicago
- (wo)
-
Chicago, IL
- (wann)
-
2021
- DOI
-
doi:10.21033/wp-2021-10
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Giannetti, Mariassunta
- Meisenzahl, Ralf R.
- Federal Reserve Bank of Chicago
Entstanden
- 2021
Ähnliche Objekte (12)
Ownership Concentration and Firm Performance in Slovenia
Diversification and ownership concentration
Ownership concentration, institutional development and firm performance in Central and Eastern Europe
Common Ownership, Concentration and Corporate Conduct
Ownership Concentration, Monitoring and Optimal Board Structure
Ownership concentration, monitoring and optimal board structure
Sector Concentration in Loan Portfolios and Economic Capital
Sector concentration in loan portfolios and economic capital
Ownership Concentration and Share Valuation: Evidence from Germany.
Ownership Concentration and Share Valuation: Evidence from Germany
Bank Ownership and Performance
Ownership Concentration and Corporate Performance on the Budapest Stock Exchange: Do Too Many Cooks Spoil the Goulash?
Ownership Concentration and Firm Performance in Slovenia
Diversification and ownership concentration
Ownership concentration, institutional development and firm performance in Central and Eastern Europe
Common Ownership, Concentration and Corporate Conduct
Ownership Concentration, Monitoring and Optimal Board Structure
Ownership concentration, monitoring and optimal board structure
Sector Concentration in Loan Portfolios and Economic Capital
Sector concentration in loan portfolios and economic capital
Ownership Concentration and Share Valuation: Evidence from Germany.
Ownership Concentration and Share Valuation: Evidence from Germany
Bank Ownership and Performance
Ownership Concentration and Corporate Performance on the Budapest Stock Exchange: Do Too Many Cooks Spoil the Goulash?
Ownership Concentration and Firm Performance in Slovenia
Diversification and ownership concentration
Ownership concentration, institutional development and firm performance in Central and Eastern Europe
Common Ownership, Concentration and Corporate Conduct
Ownership Concentration, Monitoring and Optimal Board Structure
Ownership concentration, monitoring and optimal board structure
Sector Concentration in Loan Portfolios and Economic Capital
Sector concentration in loan portfolios and economic capital
Ownership Concentration and Share Valuation: Evidence from Germany.
Ownership Concentration and Share Valuation: Evidence from Germany
Bank Ownership and Performance