Publication

Lending Relationships and the Pricing of Syndicated Loans, with Donghang Zhang and Yijia Zhao, forthcoming, Management Science


Working Papers

Underwriting and Primary Market Price Discovery of Syndicated Loans: Theory and Evidence, with Donghang Zhang and Yijia Zhao, revise and resubmit at Review of Corporate Finance Studies

Syndicated loan offerings exhibit U-shaped underpricing. Hot loan underpricing is to induce investors to reveal positive information. Cold loan underpricing is to compensate bank's retention cost.


Real Disinvestments and the Distress Anomaly: Evidence from Stocks, Bonds, and Loans, with Kevin Aretz and Shuwen Yang, revise and resubmit at Journal of Financial and Quantitative Analysis

Similar to the distress anomaly in stocks, there is a negative distress premium in bonds, loans, and firm assets.


The Volcker Rule and Bond Primary Market, with Eric Powers and Donghang Zhang, revise and resubmit at Review of Finance

Expected liquidity deterioration due to the Volcker rule increases the liquidity premium demanded by primary market investors.


CLOs, Loan Spreads, and Corporate Investments, with Donghang Zhang

CLOs reduce market friction due to market segmentation and information asymmetry. CLO ownership in a loan captures these efficiency gains. A higher CLO ownership leads to a lower loan spread and more capital expenditures. 


Borrowing from A Competitor’s Bank, with Donghang Zhang

Fourty percent of firms share banks with their industry competitors. Borrowing from a competitor’s bank is an optimal financial arrangement that mitigates agency conflicts and deters product market predation.


Dispersion across CLOs on Marking Corporate Loans

CLOs in a same loan disagree on the loan value. They trade small amounts with high frequencies, which leads to adverse selection concerns of dealers and reduces loan liquidity.


Book Chapter

Syndicated Lending, with Donghang Zhang and Yijia Zhao. The Oxford Handbook of Banking 4th Edition (Editors: Allen N. Berger, Philip Molyneux, and John O.S. Wilson)


Work in Progress

Financing Innovation by Borrowing from A Competitor's Bank


Discussions

Overnight Returns: Investor Sentiment or Investor Attention? Ahmed Ameya Prapan and Evangelos Vagenas–Nanos, EFMA 2022

Hedge Funds and Financial Intermediaries, Magnus Dahlquist, Valeri Sokolovski, and Erik Sverdrup, MFA 2022

Passing the Parcel ? Relationship Banking at the Onset of Financial Distress, Federica Salvade, Nicolas Taillet, Micheal Troege, FMA Europe 2022