Institutional investors and loan dynamics: Evidence from loan renegotiations

  title={Institutional investors and loan dynamics: Evidence from loan renegotiations},
  author={Mehdi Beyhaghi and Ca Nguyen and John K. Wald},
  • Mehdi Beyhaghi, Ca Nguyen, John K. Wald
  • Published 2019
  • Economics
  • Abstract We examine the probability of exit for different types of investors in the syndicated loan market, as well as how the entry and exit of different types of investors is associated with changes in loan characteristics. Nonbanks, particularly CLOs, closed-end funds, and mutual funds, are more likely than bank lenders to exit the syndicate rather than to participate in the renegotiated loan. For mutual funds, greater net fund outflows imply a greater likelihood of exit, and this finding is… CONTINUE READING

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