Tranching in the syndicated loan market around the world

• 成果类型: Article; Proceedings Paper
• 署名作者: Cumming, Douglas; Lopez-de-Silanes, Florencio; McCahery, Joseph A.; Schwienbacher, Armin
• 署名单位: State University System of Florida; Florida Atlantic University; University of Birmingham; SKEMA Business School; Universite Cote d'Azur; Tilburg University; Tilburg University; Universite Cote d'Azur; SKEMA Business School
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00249-1
• 发表日期: 2020
• 页码: 95-120
• 关键词: Financial contracting; tranche; syndicate; loan enforcement; Liability of foreignness; Multiple regression analysis

摘要

Loan tranching allows banks to manage risk and facilitate firm financing, which may be essential for firms that cannot access investors from stock markets. We analyze the determinants and benefits of loan tranching by pooling the tranches of individual loans to create the largest cross-country sample of syndicated loans, covering more than 150,000 loans from multinational and domestic firms. We find that, in addition to market, deal, and borrower characteristics, legal and institutional differences impact loan tranching. Strong creditor protection and efficient debt collection increase the probability of tranching and reduce tranche spreads, ultimately promoting firms' access to debt. We also find evidence that tranching facilitates the financing of multinational firms abroad due to the transfer of legal and cultural institutions to foreign subsidiaries. Overall, our results suggest that tranching plays an important role in reducing a country's financial development gap and promotes firms' access to debt.