Mind the Gap: The Difference between US and European Loan Rates

• 成果类型: Article
• 署名作者: Berg, Tobias; Saunders, Anthony; Steffen, Sascha; Streitz, Daniel
• 署名单位: Frankfurt School Finance & Management; New York University; University of Mannheim
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhw097
• 发表日期: 2017
• 页码: 948
• 关键词: LIQUIDITY RISK; Financial crisis; PRICING PUZZLE; private debt; public debt; credit; MARKET; commitments; INFORMATION; banks

摘要

We analyze pricing differences between U.S. and European syndicated loans over the 19922014 period. We explicitly distinguish credit lines from term loans. For credit lines, U.S. borrowers pay significantly higher spreads, but lower fees, resulting in similar total costs of borrowing in both markets. Credit line usage is more cyclical in the United States, which provides a rationale for the pricing structure difference. For term loans, we analyze the channels of the cross-country loan price differential and document the importance of: the composition of term loan borrowers and the loan supply by institutional investors and foreign banks.