Large customer-supplier links and syndicate loan structure

نویسندگان

چکیده

Relationships between large customers and suppliers expose lenders to additional risks. These risks may force lead agents retain a larger share of syndicated loans, reducing loan-level diversification, and, in turn, increasing the required interest rate spread. Consistent with this view, we find that borrowers' dependence on few or positively affects cost loans indirectly through loan structure. Instead, do not observe direct associated customer-supplier links, suggesting increase spread as compensation for dealing borrowers links per se. Finally, document an inverted U-shaped relationship length link held by agent.

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ژورنال

عنوان ژورنال: Journal of Corporate Finance

سال: 2021

ISSN: ['0929-1199', '1872-6313']

DOI: https://doi.org/10.1016/j.jcorpfin.2020.101844