Publications

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2021
Working Paper

Nonbank Lending and Credit Cyclicality

By: Quirin Fleckenstein, Manasa Gopal, German Gutierrez and Sebastian Hillenbrand

We document three facts about nonbank lending in the syndicated loan market. First, nonbank lending is more than twice as cyclical as bank lending. Second, declines in nonbank lending explain most of the declines in syndicated lending during the Great Recession and... View Details

Keywords: Nonbank Lending; Credit Cycles; CLO; Mutual Funds; Leveraged Lending; COVID-19; Great Migration; Non-bank Financial Institutions; Financing and Loans; Business Cycles

SSRN

March 2016
Article

Trade Credit and Taxes

By: Mihir Desai, C. Fritz Foley and James R. Hines Jr.

This paper analyzes the extent to which firms use trade credit to reallocate capital in response to tax incentives. Tax-induced differences in pretax returns encourage the use of trade credit to reallocate capital from firms facing low tax rates to those facing high... View Details

Keywords: Taxation; Trade; Credit; Capital

May 2005 (Revised November 2005)
Background Note

Note on Credit Derivatives

Provides the basic underlying model for credit risk analysis, as well as covers basic credit risk derivatives, such as asset swaps, credit default swaps, total return of rate swaps, and credit spread options. View Details

Keywords: Credit Derivatives and Swaps; Risk and Uncertainty; Credit

Purchase

2021
Working Paper

Real Credit Cycles

By: Pedro Bordalo, Nicola Gennaioli, Andrei Shleifer and Stephen J. Terry

We incorporate diagnostic expectations, a psychologically founded model of overreaction to news, into a workhorse business cycle model with heterogeneous firms and risky debt. A realistic degree of diagnosticity, estimated from the forecast errors of managers of U.S.... View Details

Keywords: Econometric Models; Business Cycles; Credit

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October 1999 (Revised March 2000)
Case

Credit Suisse (A)

Credit Suisse is looking for ways to differentiate itself from current and likely competitors. After two years of restructuring, the bank's leadership wants profitable growth. It has decided to emphasize customer service. View Details

Keywords: Restructuring; Competitive Advantage; Customer Focus and Relationships; Banking Industry; Switzerland

December 2002 (Revised January 2004)
Background Note

Note on Credit Markets

By: Joshua D. Coval, Peter Tufano and Ivo Welch

Covers various aspects of credit markets, including discounting and pricing, team structure, and default. View Details

Keywords: Financial Markets; Marketing Strategy; Price; Groups and Teams; Organizational Structure; Credit

02 Mar 2016
News

On Credit

Illustration by Eduardo Recife The large tome looks its age, which is roughly 160 years old. Bound in leather, an average page, of which there are about 800 in the volume, includes almost 100 eye-blurring lines of pen-and-ink script. It’s one of 2,522 volumes of View Details

Keywords: Julia Hanna

Forthcoming
Article

Reflexivity in Credit Markets

By: Robin Greenwood, Samuel G. Hanson and Lawrence J. Jin

Reflexivity is the idea that investors' biased beliefs affect market outcomes and that market outcomes in turn affect investors’ future biases. We develop a dynamic behavioral model of the credit cycle featuring this two-way feedback loop. Investors form beliefs about... View Details

Keywords: Reflexivity; Attitudes; Financial Markets; Forecasting and Prediction; Investment; Credit

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September 2008 (Revised September 2011)
Background Note

Note: Credit Rating Agencies

By: William E. Fruhan

The note examines the role of credit rating agencies in capital markets, with emphasis on the role of these agencies in the recent credit crisis and recommendations for change. View Details

Keywords: Financial Crisis; Capital Markets; Credit; Governing Rules, Regulations, and Reforms; Standards

Purchase

29 Jun 2012
Working Paper Summaries

Trade Credit and Taxes

Keywords: by Mihir A. Desai, C. Fritz Foley & James R. Hines

September 1999 (Revised April 2001)
Case

Credit Suisse (A) (Abridged)

By: W. Earl Sasser and William E. Fulmer

Credit Suisse is looking for ways to differentiate itself from current and likely competitors. After two years of restructuring, the bank's leadership wants profitable growth. It has decided to emphasize customer service. View Details

Keywords: Restructuring; Competitive Advantage; Customer Satisfaction; Banks and Banking; Growth and Development Strategy; Banking Industry; Retail Industry

January 2003 (Revised February 2004)
Case

The Credit Suisse Group

By: Ashish Nanda and Kelley Elizabeth Morrell

On September 19, 2002, Lukas Muhlemann announced that he would step down as chairman and CEO of the Credit Suisse Group, effective January 1, 2003. The bank had progressed from a small Swiss start-up 150 years ago to a global banking powerhouse. Over the past 5 years,... View Details

Keywords: Change Management; Business Growth and Maturation; Management Succession; Problems and Challenges; Business Startups; Banks and Banking; Banking Industry; Switzerland

February 2009
Background Note

An Introduction to Consumer Credit

By: Peter Tufano

This note reviews a variety of shorter-term consumer credit products in the U.S. with an emphasis on the types of products that low- and moderate-income consumers use. Included here are the following: credit cards, bank overdraft products, payday lending, personal... View Details

Keywords: Credit; Financing and Loans; Personal Finance; United States