Syndicated loan spreads and the composition of the syndicate

• 成果类型: Article
• 署名作者: Lim, Jongha; Minton, Bernadette A.; Weisbach, Michael S.
• 署名单位: University of Missouri System; University of Missouri Columbia; University System of Ohio; Ohio State University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.08.001
• 发表日期: 2014
• 页码: 45-69
• 关键词: Syndicated loans; Spread premiums; Hedge funds

摘要

During the past decade, non-bank institutional investors are increasingly taking larger roles in the corporate lending than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest in the same loan facilities. In a sample of 20,031 leveraged loan facilities originated between 1997 and 2007, facilities including a non-bank institution in their syndicates have higher spreads than otherwise identical bank-only facilities. Contrary to risk-based explanations of this finding, non-bank facilities are priced with premiums relative to bank-only facilities in the same loan package. These non-bank premiums are substantially larger when a hedge or private equity fund is one of the syndicate members. Consistent with the notion that firms are willing to pay a premium when loan facilities are particularly important to them, the non-bank premiums are larger when borrowing firms face financial constraints and when capital is less available from banks. (C) 2013 Elsevier B.V. All rights reserved.