Welcome!

Abstract: We estimate the uninsured deposit premium – the difference between the rates paid on uninsured versus insured deposits – by linking observed average deposit rates to an estimated share of uninsured deposits. Using U.S. bank data from 1991 to 2025, we show that the average uninsured deposit premium rose by nearly 400 basis points over this period. This rise reflects both falling insured deposit rates and rising uninsured deposit rates. We find a strong correlation with the monetary policy cycle: a one-percentage-point increase in the Federal Funds Rate corresponds to a rise of roughly 32 basis points in the uninsured deposit premium. We develop a bargaining model between banks, insured depositors, and uninsured depositors that explains these dynamics.

Abstract: We show that exchange rate movements in the dollar affect syndicated loan spreads. We identify the effect of dollar movements by focusing on spread adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by about 5 basis points. The same increase in the dollar index leads to a reduction in loan amounts by 0.5 percent, and syndicate participants experience a reduction in underpricing by 3 basis points. The effects are considerably larger for dollar appreciations. The results suggest that the dollar is a strong indicator for the global demand for risky assets and that global shocks through the dollar affect corporate borrowing costs.