Why and How Do Banks Lay off Credit Risk? The Choice between Retention, Loan Sales and Credit Default Swaps
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DOI: 10.1016/j.jcorpfin.2016.12.006
Abstract: We find that banks with capital and liquidity constraints are more likely to use credit risk transfer (CRT) instruments, including the credit derivative and the secondary loan markets. Relationship lenders and lead syndicate lenders are… read more here.
Keywords: credit; loan; credit risk; choice ... See more keywords
Loan Sales and Borrowers' Accounting Conservatism
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DOI: 10.1111/1911-3846.12408
Abstract: We examine whether initial loan sales in the secondary loan market relate to borrowing firms’ accounting conservatism. We find that borrowing firms exhibit a significant decline in accounting conservatism after the initial loan sales. We… read more here.
Keywords: conservatism; loan; borrowers accounting; loan sales ... See more keywords