haku: @indexterm syndicated loans / yhteensä: 6
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| Tekijä: | Ivashina, V. |
| Otsikko: | Asymmetric information effects on loan spreads |
| Lehti: | Journal of Financial Economics
2009 : MAY, VOL 92:2, p. 300-319 |
| Asiasana: | asymmetric information syndicated loans CAPITAL COSTS |
| Kieli: | eng |
| Tiivistelmä: | The article aims to estimate the cost of information asymmetry that exists in a syndicated loan, between the lead bank and the members of the lending syndicate. In theory, asymmetric information drives the participants to demand a higher interest rate. The leading bank can reduce this effect by holding a large ownership. The paper finds however, that in equilibrium the interest rate premium is compensated by a diversification premium, demanded by the lead bank. According to the article, the cost of information asymmetry can be calculated by using shifts in the idiosyncratic credit risk of the lead bank's loan portfolio. With this method, the effect of asymmetric information on the lead bank's share is 4 % of the total cost of credit. |
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