Arbeitspapier
The Dollar and Corporate Borrowing Costs
We show that U.S. dollar movements affect syndicated loan terms for U.S. borrowers, even for those without trade exposure. We identify the effect of dollar movements using spread and loan amount adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by up to 15 basis points and reduces loan amounts and underpricing by up to 2 percent and 7 basis points, respectively. These effects are concentrated in dollar appreciations. Our results suggest that global factors reflected in the dollar determine U.S. borrowing costs.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 8376
- Classification
-
Wirtschaft
Economic Integration
International Financial Markets
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- Subject
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loan pricing
syndicated loans
dollar
institutional investors
risk taking
- Event
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Geistige Schöpfung
- (who)
-
Meisenzahl, Ralf R.
Niepmann, Friederike
Schmidt-Eisenlohr, Tim
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and Ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Meisenzahl, Ralf R.
- Niepmann, Friederike
- Schmidt-Eisenlohr, Tim
- Center for Economic Studies and Ifo Institute (CESifo)
Time of origin
- 2020
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