Liquidity risk and maturity management over the credit cycle / by Atif Mian & João A.C. Santos Atif Mian & João A.C. Santos
Material type:
TextSeries: Journal of Financial Economics ; 127 (2)Publication details: Amsterdam Elsevier February 2018Description: Pages 264-284ISSN: - 0304-405X
| Cover image | Item type | Current library | Home library | Collection | Shelving location | Call number | Materials specified | Vol info | URL | Copy number | Status | Notes | Date due | Barcode | Item holds | Item hold queue priority | Course reserves | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Periodicals
|
College Library Periodical Section | Available |
Abstract
We show that firm demand-side factors are strong drivers of procyclical refinancing behavior over the credit cycle using novel data from the Shared National Credit program. Firms are more likely to refinance early when credit conditions are good to keep the effective maturity of their loans long and hedge against having to refinance in tight credit conditions. High credit quality firms are better able to hedge, making their refinancing propensity more sensitive to credit cycles than less creditworthy firms. There is a strong relationship between refinancing a loan, and subsequent growth in capital expenditure, especially when a loan is refinanced early.
There are no comments on this title.