RESEARCH
PUBLICATIONS
[11] "Corporate Loan Spreads and Economic Activity," with Anthony Saunders, Alessandro Spina, and Sascha Steffen, Review of Financial Studies, forthcoming. Link to: [SSRN] [Online Appendix]
[10] "Credit Supply Shocks: Financing Real Growth or Takeovers," with Tobias Berg and Michael Wedow, Review of Corporate Finance Studies 13(2), 428-458, 2024. Link to: [SSRN] [Published Version and Online Appendix]
[9] "Financial Debt Contracting and Managerial Agency Problems," with Björn Imbierowicz, Financial Management 53(1), 99-118, 2024. Link to: [Published Version]
[8] "Spillover Effects in Empirical Corporate Finance," with Tobias Berg and Markus Reisinger, Journal of Financial Economics 142(3), 1109-1127, 2021. Link to: [SSRN] [CEPR Discussion Paper] [Published Version] [Online Appendix] [Code] [Teaching Slides]
[7] "Bank Concentration and Product Market Competition," with Farzad Saidi, Review of Financial Studies 34(10), 4999-5035, 2021. Link to: [Published Version]
[6] "Managerial Optimism and Debt Contract Design: The Case of Syndicated Loans," with Tim Adam, Valentin Burg, and Tobias Scheinert, Management Science 66(1), 352-375, 2020. Link to: [Published Version] [Online Appendix] [SSRN]
[5] "A Capital Structure Channel of Monetary Policy," with Benjamin Grosse-Rueschkamp and Sascha Steffen, Journal of Financial Economics 133(2), 357-378, 2019. Link to: [SSRN] [Published Version] [Online Appendix]
[4] "Mind the Gap: The Difference Between US and European Loan Rates," with Tobias Berg, Anthony Saunders, and Sascha Steffen, Review of Financial Studies 30(3), 948-987, 2017. Link to: [Published Version] [SSRN]
[3] "The Impact of Credit Default Swap Trading on Loan Syndication," Review of Finance 20(1), 265-286, 2016. Link to: [Published Version] [Erratum Table IV]
[2] "Hold-Up and the Use of Performance-Sensitive Debt," with Tim Adam, Journal of Financial Intermediation 26, 47-67, 2016. Link to: [Published Version]
[1] "Determinants of the Size of the Sovereign Credit Default Swap Market," with Tobias Berg, Journal of Fixed Income 25(3), 58-73, 2016. Link to: [Published Version] [SSRN]
WORK IN PROGRESS
The Art of Timing: Managing Sudden Stop Risk in Corporate Credit Markets Link to: [Paper]
with Lin Ma and Fabrice Tourre, selected conference presentations: FIFI 2023, WFA 2024
Abstract: High yield firms aggressively exercise the call option embedded in their bonds. We construct a new measure of option moneyness and show that firms efficiently exercise the interest rate and spread option implicit in these contracts. Controlling for moneyness, firms frequently prepay bonds and issue new debt if rollover risk is high. We develop and estimate a structural model to quantify the costs and benefits of dynamically managing this risk. The ability to use callable debt almost entirely dissipates dead-weight losses from rollover risk. Creditor-shareholder conflicts reduce the effectiveness of this dynamic hedging strategy for highly levered firms.
Out of Sight, Out of Mind: Divestments and the Global Reallocation of Pollutive Assets Link to: [SSRN]
with Tobias Berg and Lin Ma, selected conference presentations: WFA 2024
Abstract: Large emitters reduced their carbon emissions by around 11-15% after the 2015 Paris Agreement (“the Agreement”) relative to public firms that are less in the limelight. We show that this effect is predominantly driven by divestments. Large emitters are 9 p.p. more likely to divest pollutive assets in the post-Agreement period, an increase of over 75%. This divestment effect comes from asset sales and not from closures of pollutive facilities. There is no evidence for increased engagements in other emission reduction activities. Our results indicate significant global asset reallocation effects after the Agreement, shifting emissions out of the limelight.
Too Poor to be Green? The Effect of Wealth on the Residential Heating Transformation Link to: [SSRN]
with Tobias Berg and Ulf Nielsson
Abstract: Using the near-universe of Danish owner-occupied residential houses, we show that an exogenous increase in wealth significantly increases the likelihood to switch to green heating. We estimate an elasticity of one at the median of the wealth distribution, i.e., a 10% increase in wealth increase raises green heating adoption by 10%. Effects are heterogeneous along the wealth distribution: all else equal, a redistribution of wealth from rich households to poor households can significantly increase green heating adoption. We further explore potential channels of our findings (pro-social preferences, financial constraints, and luxury goods interpretation). Our results emphasize the role of economic growth for the green transition.