کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
1000145 1481541 2014 13 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Credit protection and lending relationships
ترجمه فارسی عنوان
حفاظت از اعتبار و روابط وام
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد، اقتصادسنجی و مالیه (عمومی)
چکیده انگلیسی

We examine the impact of credit default swaps (CDS) on lending relationships and credit market efficiency. CDS insulate lenders against losses from forcing borrowers into default and liquidation. This improves the credibility of foreclosure threats, which can have positive implications for borrower incentives and credit availability ex ante. However, lenders may also abuse their enhanced bargaining power vis-à-vis borrowers and extract excessive rents in debt renegotiations. If this hold up threat becomes severe, borrowers will be reluctant to agree to debt maturity designs or control rights transfers that would have been optimal in the absence of CDS markets. The introduction of CDS markets may then ultimately tighten credit constraints and be detrimental to welfare. Our analysis yields a number of empirical implications, some of which have been tested.


► We examine the impact of credit default swaps on lending relationships.
► CDS insulate lenders against losses from letting borrowers fail.
► This improves the credibility of foreclosure threats, which can have positive implications for borrower incentives ex ante.
► However, lenders may also abuse their enhanced bargaining power and extract excessive rents in debt renegotiations.
► If this hold up problem becomes severe, the introduction of CDS markets will ultimately tighten credit constraints.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Financial Stability - Volume 10, February 2014, Pages 7–19
نویسندگان
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