Europe vs. the U.S. A New Look at the Syndicated Loan Pricing Puzzle

Aurore Burietz, Kim Oosterlinck and Ariane Szafarz

No 17-021, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: According to the syndicated loan pricing puzzle (Carey and Nini, Journal of Finance, 2007) interest rates charged to corporate borrowers are lower in Europe than in the U.S. Our investigation suggests that controlling for region-specific credit ratings makes the Europe-U.S. gap insignificant, and solves the puzzle. We speculate that the puzzle originates from the lack of uniformity of accounting standards.

Keywords: Pricing puzzle; Syndicated loan; Rating; Europe; U.S. (search for similar items in EconPapers)
JEL-codes: E40 G15 G21 G24 (search for similar items in EconPapers)
Pages: 11 p.
Date: 2017-08-21
New Economics Papers: this item is included in nep-acc, nep-mac and nep-ure
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Europe vs. the U.S.: A new look at the syndicated loan pricing puzzle (2017)
Working Paper: Europe vs. the U.S.: A new look at the syndicated loan pricing puzzle (2017)
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