Large debt financing: syndicated loans versus corporate bonds

Arbeitspapier

Following the introduction of the euro, the markets for large debt financing experienced a historical expansion. We investigate the financial factors behind the issuance of syndicated loans for an extensive sample of euro area non-financial corporations. For the first time we compare these factors to those of its major competitor: the corporate bond market. We find that large firms, with greater financial leverage, more (verifiable) profits and higher liquidation values tend to prefer syndicated loans. In contrast, firms with larger levels of short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1028

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; International Finance: General ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: corporate bonds ; debt choice ; syndicated loans ; the euro ; Kreditgeschäft ; Unternehmensanleihe ; Unternehmensfinanzierung ; Eurozone

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Altunbas, Yener ; Kara, Alper ; Marqués-Ibáñez, David
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/153462
• Last update: 10.03.2025, 11:43 AM CET