Syndicated loans in emerging markets
نویسندگان
چکیده
Article history: Received 5 April 2007 Received in revised form 3 March 2008 Accepted 17 April 2008 Available online 25 April 2008 There has been a considerable expansion of the volume of syndicated loans in emerging markets in the recent years. We provide the first analysis of the determinants of the decision of banks to syndicate a loan on a sample of loan facilities from 50 emerging countries. We show the significant role of loan characteristics and of financial development, banking regulation, and legal institutions, in the decision to syndicate a loan. We support the efforts of authorities to increase banking competition and efficiency, and to implement binding banking regulation on capital requirement to promote the expansion of syndicated loans. © 2008 Elsevier B.V. All rights reserved. JEL Codes: G21 C25
منابع مشابه
The Value of Financial Intermediaries: Empirical Evidence from Syndicated Loans
Empirical estimates of the benefit of financial intermediation are constructed by examining the role played by local banks in facilitating syndicated loans to borrowers in emerging market countries. Assuming that local banks possess a superior monitoring ability, the market is ideal for studying the value of intermediation since cross-border lending into emerging markets is plagued by particula...
متن کاملThe integration of bank syndicated loan and junk bond markets
This paper hypothesizes that the special role of banks as corporate quasi-insiders has been changing due to developments in informational, legal and institutional infrastructures of syndicated loan markets. We investigate the integration of intermediated and disintermediated financial markets through highly leveraged transaction (HLT) syndicated loans during the 1990s. We demonstrate that, with...
متن کاملValuation of Loan CDS and Synthetic Loan CDO with Prepayment Risk
Corporate loans tend to be secured, comprising the most senior part of the high-yield capital structure. Trading in loan credit default swap (LCDS) has increased rapidly over the past few years. Only syndicated secured loans of the designated priority (1 Lien, 2 Lien, etc.) are deliverable into the contract and a LCDS contract can be prepaid (cancelled) when no senior secured loan of the design...
متن کاملFinancial Crises, Moral Hazard and the “speciality” of the International Interbank Market: Further Evidence from the Pricing of Syndicated Bank Loans to Emerging Markets
We analyse the evolution of emerging market loan spreads at a more disaggregated level than other current studies, providing statistical support to the assumption of the “speciality” of the international interbank market, to the extent that the pricing of interbank credit is insensitive to the nature (public or private) of the borrower. In sharp contrast, the public or private nature of other b...
متن کاملDebt Restructuring Costs and Bankruptcy Risk: Evidence from CDS Spreads
We examine the effects of a recent change to the US tax code that reduced the costs lenders incur when restructuring loans out of court (Regulation TD9599). The regulation contemplated particular types of loans, allowing us to use a triple-differences approach to identify the degree to which borrowers are differentially affected by the shift in restructuring costs. We model these changes and sh...
متن کامل