Loading...
Please wait, while we are loading the content...
Similar Documents
Price Discrimination on Syndicated Loans and the Number of Lenders : Empirical Evidence from the Sovereign Debt Syndication
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hallak, Issam |
| Copyright Year | 2002 |
| Abstract | Syndicated loans and the number of lending relationships have raised growing attention. All other terms being equal (e.g. seniority), syndicated loans provide larger payments (in basis points) to lenders funding larger amounts. The paper explores empirically the motivation for such a price discrimination on sovereign syndicated loans in the period 1990-1997. First evidence suggests larger premia are associated with renegotiation prospects. This is consistent with the hypothesis that price discrimination is aimed at reducing the number of lenders and thus the expected renegotiation costs. However, larger payment discrimination is also associated with additional market segments and with larger loans, thus minimising borrowing costs and/or attempting to widen the circle of lending relationships in order to raise successfully the targeted amount. JEL classification : F34; G21; G33 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://symposium.wiwi.uni-karlsruhe.de/papers/Hal.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
