Trends in Corporate Borrowing

2020 ◽  
Author(s):  
Tobias Berg ◽  
Anthony Saunders ◽  
Sascha Steffen
Keyword(s):  
Corporate Borrowing

scholarly journals The Dollar and Corporate Borrowing Costs

2021 ◽  
Vol 2021 (1312) ◽  
pp. 1-64
Author(s):  
Ralf R. Meisenzahl ◽  
◽  
Friederike Niepmann ◽  
Tim Schmidt-Eisenlohr ◽  
◽  
...  
Keyword(s):  
Standard Deviation ◽  
High Frequency ◽  
Standard Deviation Increase ◽  
Borrowing Costs ◽  
Corporate Borrowing ◽  
Loan Terms ◽  
Syndicated Loan ◽  
Loan Amount

We show that U.S. dollar movements affect syndicated loan terms for U.S. borrowers, even for those without trade exposure. We identify the effect of dollar movements using spread and loan amount adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by up to 15 basis points and reduces loan amounts and underpricing by up to 2 percent and 7 basis points, respectively. These effects are concentrated in dollar appreciations. Our results suggest that global factors reflected in the dollar affect U.S. borrowing costs.

Anatomy of Corporate Borrowing Constraints*

2020 ◽  
Vol 136 (1) ◽  
pp. 229-291 ◽  
Author(s):  
Chen Lian ◽  
Yueran Ma
Keyword(s):  
Asset Price ◽  
Cash Flows ◽  
Borrowing Constraints ◽  
Collateral Damage ◽  
Total Debt ◽  
Borrowing Constraint ◽  
Corporate Borrowing ◽  
Physical Assets ◽  
Macro Finance ◽  
Nonfinancial Firms

Abstract Macro-finance analyses commonly link firms’ borrowing constraints to the liquidation value of physical assets. For U.S. nonfinancial firms, we show that 20% of debt by value is based on such assets (asset-based lending in creditor parlance), whereas 80% is based predominantly on cash flows from firms’ operations (cash flow–based lending). A standard borrowing constraint restricts total debt as a function of cash flows measured using operating earnings (earnings-based borrowing constraints). These features shape firm outcomes on the margin: first, cash flows in the form of operating earnings can directly relax borrowing constraints; second, firms are less vulnerable to collateral damage from asset price declines, and fire sale amplification may be mitigated. Taken together, our findings point to new venues for modeling firms’ borrowing constraints in macro-finance studies.

6. Raising capital: debentures: fixed and floating charges

2016 ◽  
Author(s):  
Alan Dignam ◽  
John Lowry
Keyword(s):  
Fixed Charge ◽  
The Core ◽  
Corporate Borrowing ◽  
The Subject ◽  
Secured Creditors

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter discusses corporate borrowing through debentures or debenture stock, as well as fixed and floating charges that companies issue to creditors as security interests. It begins by outlining some important distinctions between the ability of small and large companies to raise loan capital. It then considers the priority of secured creditors and the registration requirements for charges, the issue of whether or not a fixed charge could be created over a company’s book debts, provisions for automatic crystallisation that converts the floating charge into an equitable fixed charge over company assets, and reform of security interests.

Finance Subsidiaries and Corporate Borrowing Capacity

1972 ◽  
Vol 1 (1) ◽  
pp. 21 ◽  
Author(s):  
Wilbur G. Lewellen
Keyword(s):  
Corporate Borrowing
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