Consuelo Silva, LARS NORDEN, Wolf Wagner.
Journal of economic dynamics and control.
2014.
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….