Publication
How banks price loans in leveraged buy-outs: an empirical analysis of spreads determinants
| dc.contributor.author | Pinto, João | |
| dc.contributor.author | Pacheco, Luís | |
| dc.contributor.author | Alves, Paulo | |
| dc.contributor.author | Cunha, Ricardo | |
| dc.date.accessioned | 2018-07-05T16:21:39Z | |
| dc.date.available | 2018-07-05T16:21:39Z | |
| dc.date.issued | 2016 | |
| dc.description.abstract | This paper investigates which factors determine the pricing of loans in LBOs, using a worldwide sample of 12,673 syndicated loans closed during the 2000 - 2013 period . We find that spreads and pricing processes differ significantly in market - based versus bank - based financial systems as well as in the U.S. vis - à - vis W.E. In the pre - crisis period borrowers in market - based financial systems face higher spreads (33.59 bps) than those in bank - based financial systems and loans closed in common law countries are associated with higher spreads ( 50.71 bps ) than those closed in civil law countries . D uring the crisis period only loans in common law legal systems are associated with higher spreads . In line with Carey and Nini’s (2007) findings , w e show that U.S. borrowers face higher spread s than W.E. borrowers. We also find that the pric ing of loans in LBOs depends mainly on marketability and default factors and that acquired firms with a h igher cash flow potential and asset tangibility face lower spreads. Finally, a robust convex relationship between spread and maturity is found for loans in LBOs . | pt_PT |
| dc.description.version | info:eu-repo/semantics/publishedVersion | pt_PT |
| dc.identifier.citation | Pinto, J., Pacheco, L., Alves, P., Cunha, R. (2016). How banks price loans in leveraged buy-outs: an empirical analysis of spreads determinants. Working papers: Economics. N.º 4, 47 p. | pt_PT |
| dc.identifier.uri | http://hdl.handle.net/10400.14/25183 | |
| dc.language.iso | eng | pt_PT |
| dc.peerreviewed | no | pt_PT |
| dc.relation.publisherversion | https://ideas.repec.org/p/cap/wpaper/042016.html | pt_PT |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | pt_PT |
| dc.subject | Loan pricing | pt_PT |
| dc.subject | LBOs | pt_PT |
| dc.subject | Financial crisis | pt_PT |
| dc.subject | Term structure of credit spreads | pt_PT |
| dc.title | How banks price loans in leveraged buy-outs: an empirical analysis of spreads determinants | pt_PT |
| dc.type | working paper | |
| dspace.entity.type | Publication | |
| oaire.citation.title | Working papers: Economics | pt_PT |
| rcaap.rights | restrictedAccess | pt_PT |
| rcaap.type | workingPaper | pt_PT |