Loans on sale: Credit market seasonality, borrower need, and lender rents

• 成果类型: Article
• 署名作者: Murfin, Justin; Petersen, Mitchell
• 署名单位: Yale University; Northwestern University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.09.011
• 发表日期: 2016
• 页码: 300-326
• 关键词: credit market competition; syndicated loans; seasonality; Intertemporal price discrimination

摘要

The market for corporate credit is characterized by significant seasonal variation, both in interest rates and the volume of new lending. Firms borrowing from banks during seasonal sales in late spring and fall issue at 19 basis points cheaper than winter and summer borrowers. Issuers during cheap seasons appear to have less immediate needs, but are enticed by low rates to engage in precautionary borrowing. High-interest-rate periods capture borrowers with unanticipated, non-deferrable investment needs. Consistent with models of intertemporal price discrimination, seasonality is strongly associated with market concentration among a few large banks with repeated interactions. (C) 2016 Elsevier B.V. All rights reserved.