Bank Loan Maturity and Priority when Borrowers can Refinance
AbstractThis paper describes a theory of how borrowers with private information about their future credit prospects choose seniority and maturity of bank loans and publicly issued bonds. The model implies that short-term bank loans will be senior to public long- term debt. With sufficient public debt, banks will not make concessions when restructuring their debt in response to a borrower's financial distress. Recent evidence on the debt restructuring activities of banks is interpreted in the context of the model.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by European Science Foundation Network in Financial Markets, c/o C.E.P.R, 77 Bastwick Street, London EC1V 3PZ in its series CEPR Financial Markets Paper with number 0022.
Date of creation: Oct 1992
Date of revision:
Availability: in print
Contact details of provider:
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tirole, Jean, 2009. "Cognition and Incomplete Contracts," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Stanley D. Longhofer & João A. C. Santos, 1999.
"The importance of bank seniority for relationship lending,"
620, Federal Reserve Bank of Chicago.
- Longhofer, Stanley D. & Santos, Joao A. C., 2000. "The Importance of Bank Seniority for Relationship Lending," Journal of Financial Intermediation, Elsevier, vol. 9(1), pages 57-89, January.
- Stanley D. Longhofer & João A.C. Santos, 1998. "The importance of bank seniority for relationship lending," Working Paper 9808, Federal Reserve Bank of Cleveland.
- João A. C. Santos & Stanley D. Longhofer, 1998. "The importance of bank seniority for relationship lending," BIS Working Papers 58, Bank for International Settlements.
- Luigi Guiso & Raoul Minetti, 2007.
"The Structure of Multiple Credit Relationships: Evidence from US Firms,"
Economics Working Papers
ECO2007/46, European University Institute.
- Luigi Guiso & Raoul Minetti, 2010. "The Structure of Multiple Credit Relationships: Evidence from U.S. Firms," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(6), pages 1037-1071, 09.
- Douglas W. Diamond, 1994. "Corporate capital structure: the control roles of bank and public debt with taxes and costly bankruptcy," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 11-37.
- Tirole, Jean, 2008.
"Cognition and Incomplete Contracts,"
IDEI Working Papers
453, Institut d'Économie Industrielle (IDEI), Toulouse.
- Guiso, Luigi & Minetti, Raoul, 2004. "Multiple Creditors and Information Rights: Theory and Evidence from US Firms," CEPR Discussion Papers 4278, C.E.P.R. Discussion Papers.
- Stanley D. Longhofer, 1994. "Bankruptcy rules and debt contracting: on the relative efficiency of absolute priority, proportionate priority, and first-come, first-served rules," Working Paper 9415, Federal Reserve Bank of Cleveland.
- Demirguc-Kunt, Asli & Maksimovic, Vojislav, 1996. "Financial constraints, uses of funds, and firm growth : an international comparison," Policy Research Working Paper Series 1671, The World Bank.
- Stanley D. Longhofer & Stephen R. Peters, 2000. "Protection for whom? creditor conflicts in bankruptcy," Working Paper 9909R, Federal Reserve Bank of Cleveland.
- Andrew Winton, 1996. "Monitored finance, liquidity, and institutional investment choice," Working Paper 9616, Federal Reserve Bank of Cleveland.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.