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SubmittedOpen Access (License Unspecified), Open
Journal article
Is the Corporate Loan Market Globally Integrated? A Pricing Puzzle
The Journal of finance (New York), v 62(6), pp 2969-3007
Dec 2007
Abstract
We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the United States, other things equal. Differences in borrower, loan, and lender characteristics do not appear to explain this phenomenon. Borrowers overwhelmingly issue in their natural home market and bank portfolios display home bias. This may explain why pricing discrepancies are not competed away, though their causes remain a puzzle. Thus, important determinants of loan origination market outcomes remain to be identified, home bias appears to be material for pricing, and corporate financing costs differ across Europe and the United States.
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Details
- Title
- Is the Corporate Loan Market Globally Integrated? A Pricing Puzzle
- Creators
- MARK Carey - Federal ReserveGREG Nini - Drexel University, Finance
- Publication Details
- The Journal of finance (New York), v 62(6), pp 2969-3007
- Publisher
- Blackwell Publishing Inc
- Number of pages
- 39
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000251251600013
- Scopus ID
- 2-s2.0-36649012426
- Other Identifier
- 991021873015604721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business, Finance
- Economics