BanksUse of Credit Derivatives and Loan Pricing: What Is the Channel and Does It Persist Under Adverse Economic Conditions?

  • Lars Nordeny, Consuelo Silva Bustonzand, Wolf Wagnerx
  • Published 2011

Abstract

This paper studies whether the use of credit derivatives at banks has an impact on the spreads banks charge to their corporate borrowers, and if so, through which channel(s) this occurs. We …nd that a bank’s gross position in credit derivatives is associated with signi…cantly lower loan spreads in syndicated lending markets, while the bank’s net position is… (More)

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Cite this paper

@inproceedings{Nordeny2011BanksUseOC, title={BanksUse of Credit Derivatives and Loan Pricing: What Is the Channel and Does It Persist Under Adverse Economic Conditions?}, author={Lars Nordeny and Consuelo Silva Bustonzand and Wolf Wagnerx}, year={2011} }