Subsidio para Publicaciones en revistas de Acceso Abierto 2024 Apertura: lunes 18 de marzoCierre: hasta el 11 de noviembre del 2024 o hasta agotar los fondos disponibles
Fondo para Traducciones 2024 Apertura: lunes 18 de marzoCierre: 11 de noviembre del 2024 o hasta agotar los fondos disponibles
Convocatoria Fondecyt Postdoctorado 2025 Apertura: lunes 11 de marzoCierre: 11 de abril a las 16:00 hrs
Segunda Convocatoria 2024 – Asistencia a Congresos y Seminarios en el Extranjero (2024-II) Apertura: miércoles 6 de marzoCierre: martes 26 de marzo a las 17.00 hrs
Convocatoria Retiros de Investigación DIP-CUI Apertura: lunes 21 de agostoCierre: 2 semanas antes del retiro
Financial Innovations and bank behaviour: evidence from credit markets
This paper investigates whether, and through which channel, the active use of credit derivatives changes bank behavior in the credit market, and how this channel was affected by the crisis of 2007–2009. Our principal finding is that banks with larger gross positions in credit derivatives charge significantly lower corporate loan spreads, while banks? net positions are not consistently related to loan pricing. We argue that this is consistent with banks passing on risk management benefits to corporate borrowers but not with alternative channels through which credit derivative use may affect loan pricing. We also find that the magnitude of the risk management effect remained unchanged during the crisis period of 2007–2009. In addition, banks with larger gross positions in credit derivatives cut their lending by less than other banks during the crisis and have consistently lower loan charge-offs. In sum, our study is suggestive of significant risk management benefits from financial innovations that persist under adverse conditions – that is, when they matter most.
Información de Publicación
Autores:
Consuelo Silva
Institución: Universidad Alberto HurtadoFacultad: Economía y NegociosUnidad: Economía y Negocios
LARS NORDEN
Institución: TILBURG UNIVERSITYFacultad: ECONOMICSUnidad: ECONOMICS AND BUSINESS