Publication
How banks price loans for LBOs: an empirical analysis of spread determinants
| dc.contributor.author | Alves, Paulo P. | |
| dc.contributor.author | Cunha, M. Ricardo | |
| dc.contributor.author | Pacheco, Luís K. | |
| dc.contributor.author | Pinto, João M. | |
| dc.date.accessioned | 2021-06-21T16:28:46Z | |
| dc.date.available | 2022-01-01T01:30:15Z | |
| dc.date.issued | 2022-12-01 | |
| dc.description.abstract | This paper examines which factors determine the pricing of loans for LBOs, using a worldwide sample of 11,111 loans closed in the 2000–2016 period. Our findings are consistent with the hypotheses that loans for LBOs extended to borrowers in market- versus bank-based financial systems are differently priced, and that law and institutional characteristics are important determinants of spreads for deals closed in market-oriented countries. Despite LBO loan pricing differing significantly in normal versus crisis times, loans extended to borrowers in market-based financial systems have higher spreads than those where banks play a major role. Our results also support the hypothesis of tranching as a mechanism of reducing spreads by completing financial markets and mitigating informational asymmetries. Finally, a robust convex relationship between spread and maturity is found, suggesting higher market competition by banks and investors for standard, medium-term maturities. | pt_PT |
| dc.description.version | info:eu-repo/semantics/acceptedVersion | pt_PT |
| dc.identifier.doi | 10.1007/s10693-021-00355-y | pt_PT |
| dc.identifier.eid | 85106405640 | |
| dc.identifier.issn | 0920-8550 | |
| dc.identifier.uri | http://hdl.handle.net/10400.14/33800 | |
| dc.identifier.wos | 000653117200001 | |
| dc.language.iso | eng | pt_PT |
| dc.peerreviewed | yes | pt_PT |
| dc.subject | Loan pricing | pt_PT |
| dc.subject | LBOs | pt_PT |
| dc.subject | Financial crisis | pt_PT |
| dc.subject | Market-based | pt_PT |
| dc.subject | Term structure of spreads | pt_PT |
| dc.title | How banks price loans for LBOs: an empirical analysis of spread determinants | pt_PT |
| dc.type | journal article | |
| dspace.entity.type | Publication | |
| oaire.citation.endPage | 200 | |
| oaire.citation.issue | 3 | |
| oaire.citation.startPage | 163 | |
| oaire.citation.title | Journal of Financial Services Research | pt_PT |
| oaire.citation.volume | 62 | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | article | pt_PT |
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