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The international syndicated loan market network: An “unholy trinity”?

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  • Champagne, Claudia

Abstract

This paper provides a descriptive analysis of the international network of syndicated loan lenders through an examination of its topology and structure using network theory measures. The author studies both the undirected and directed graphs, weighted and unweighted connections, as well as different sub-networks based on lender type and geographical regions. Results show that the networks and sub-networks generally display an “unholy trinity” of structural properties that can be related to network robustness and stability. Specifically, lender networks have high complexity and connectivity, have a small-world structure characterized by proximity and clustering and also display scale-free characteristics with preferential attachment.

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  • Champagne, Claudia, 2014. "The international syndicated loan market network: An “unholy trinity”?," Global Finance Journal, Elsevier, vol. 25(2), pages 148-168.
    • Handle: RePEc:eee:glofin:v:25:y:2014:i:2:p:148-168
    DOI: 10.1016/j.gfj.2014.06.006
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    Cited by:

    1. Togan Egrican, Aslı, 2021. "Overlapping board connections with banker directors and corporate loan terms: Evidence from syndicated loans," Global Finance Journal, Elsevier, vol. 50(C).
    2. Kanno, Masayasu, 2022. "Exploring risks in syndicated loan networks: Evidence from real estate investment trusts," Economic Modelling, Elsevier, vol. 115(C).
    3. Line Drapeau & Claudia Champagne, 2015. "Do Syndicated Loans Influence Systemic Risk? An Empirical Analysis of the Canadian Syndicated Loan Market," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 22-41, November.
    4. Ling, Yu-Xiu & Xie, Chi & Wang, Gang-Jin, 2022. "Interconnectedness between convertible bonds and underlying stocks in the Chinese capital market: A multilayer network perspective," Emerging Markets Review, Elsevier, vol. 52(C).

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    More about this item

    Keywords

    Financial network analysis; Syndicated loan market; Small-world; Scale-free; Network structure;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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