Europe vs. the U.S.: A new look at the syndicated loan pricing puzzle

Aurore Burietz, Kim Oosterlinck and Ariane Szafarz

Economics Letters, 2017, vol. 160, issue C, 50-53

Abstract: According to the syndicated loan pricing puzzle (Carey and Nini, 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)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Europe vs. the U.S. A New Look at the Syndicated Loan Pricing Puzzle (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:160:y:2017:i:c:p:50-53

DOI: 10.1016/j.econlet.2017.08.018

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