Lenders Value Borrower Relationships

Thomas Ruchti, Andrew Bird, Michael Hertzel and Stephen A. Karolyi

No 24-02, The OFR Blog from Office of Financial Research, US Department of the Treasury

Abstract: Lenders decide whether to enforce upon borrower breach of covenants. These decisions imply that lenders value borrower relationships at 11% of loan principal.

Keywords: syndicated lending; financial covenants; lending relationships; intangible capital (search for similar items in EconPapers)
Date: 2024-03-06
New Economics Papers: this item is included in nep-cfn
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