00000nam 2200000za 4500 9.830349 CaOODSP 20221107145517 cr ||||||||||| 170111s2016 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2016-60E-PDF Paligorova, Teodora. Non-bank investors and loan renegotiations [electronic resource] / by Teodoara Paligorova and João A.C. Santos. [Ottawa] : Bank of Canada, c2016. ii, 53 p. : ill. (most in col.) Staff Working Paper, 1701-9397 ; 2016-60 "December 2016." Includes bibliographical references. "We document that the structure of syndicates affects loan renegotiations. Lead banks with large retained shares have positive effects on renegotiations. In contrast, more diverse syndicates deter renegotiations, but only for credit lines. The former result can be explained with coordination theories. The puzzling effect of syndicate diversity in term loan renegotiations derives from the growth of collateralized loan obligations (CLOs) in the syndicated loan market and the coordination between these vehicles and lead banks. CLOs that have a relationship with the lead bank of the renegotiated loan are strong supporters of amount-increase renegotiations, arguably because this gives them access to attractive investments. Related CLOs fund not only their portion of the loan increase, but also the portion that was supposed to be funded by the lead bank. Our findings highlight the previously unrecognized role of the growing presence of non-bank lendersin corporate lending"--Abstract, p. ii. Includes abstract in French. gccst Financial institutions gccst Policy gccst Regulation Santos, João Cabral dos. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2016-60 (CaOODSP)9.806221 PDF 594 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2016-60-eng.pdf