Institutional Investment in Syndicated Loans
A recent innovation in the syndicated loan market has been the arrival of institutional investors, including hedge funds, hybrid funds and collateralized loan/debt obligation (CLO/CDO) managers. This paper focuses on the institutional loan market, an area of little prior empirical research, and finds that institutional loans have higher mean primary yield spreads (about 50bps) than bank loans, ceteris paribus. Moreover, institutional loans behave differently than bank loans on the secondary market, as evidenced by higher first trading day return, greater price volatility, higher liquidity, and a shorter holding period by their original lenders. Following information-based theories in the IPO literature (Rock (1986), and Chemmanur (1993) among others), we conjecture that the higher yield on institutional loans serves as compensation for attracting sufficient demand and for continuous participation of less informed investors.
Pei Shao Debarshi K. Nandy
School of Business, University of Northern British Columbia, 3333 University Way, Prince George, Bri Schulich School of Business, York University, 4700 Keele Street, Toronto, Ontario, Canada, M3J 1P3
国际会议
成都
英文
1-65
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）