Why borrowers pay premiums to larger lenders: Empirical evidence from sovereign syndicated loans
Publisher: Goethe University, Center for Financial Studies (CFS) Frankfurt a. M.
Subject: F34 | G33 | G21 | Sovereign Debt | Relationship Lending; Number of Lenders; Syndicated loans; Sovereign Debt | Relationship Lending | Syndicated Loans | Number of Lenders | Relationship Lending,Number of Lenders,Syndicated Loans,Sovereign Debt
jel: jel:F34 | jel:G33 | jel:G21
All other terms being equal (e.g. seniority), syndicated loan contracts provide larger lending compensations (in percentage points) to institutions funding larger amounts. This paper explores empirically the motivation for such a price design on a sample of sovereign sy... View more