Did Structured Credit Fuel the LBO Boom?

• 成果类型: Article
• 署名作者: Shivdasani, Anil; Wang, Yihui
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Chinese University of Hong Kong
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2011.01667.x
• 发表日期: 2011
• 页码: 1291-1328
• 关键词: management buyouts; finance; securitization; ECONOMICS; cost

摘要

The leveraged buyout (LBO) boom of 2004 to 2007 was fueled by growth in collateralized debt obligations (CDOs) and other forms of securitization. Banks active in structured credit underwriting lent more for LBOs, indicating that bank lending policies linked LBO and CDO markets. LBO loans originated by large CDO underwriters were associated with lower spreads, weaker covenants, and greater use of bank debt in deal financing. Loans financed through structured credit markets did not lead to worse LBOs, overpayment, or riskier deal structures. Securitization markets altered banks' access to capital, affected their lending policies, and fueled the recent LBO boom.