Title of article
Has theCDSmarketloweredthecostofcorporatedebt
Author/Authors
AdamB.Ashcraft ، نويسنده , , Joa?o A.C.Santos، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
10
From page
514
To page
523
Abstract
Manyhaveclaimedthatcreditdefaultswaps(CDSs)haveloweredthecostofdebt
financingtofirmsbycreatingnewhedgingopportunitiesandinformationforinvestors.
This paperevaluatestheimpactthattheonsetofCDStradinghasonthespreadsthat
underlyingfirmspaytoraisefundinginthecorporatebondandsyndicatedloan
markets.Employingarangeofmethodologies,wefailtofindevidencethattheonsetof
CDS tradinglowersthecostofdebtfinancingfortheaverageborrower.Further,we
uncovereconomicallysignificantadverseeffectsonriskyandinformationallyopaque
firms.
Keywords
Credit defaultswapsLoan spreadsCredit spreads
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846308
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