Asymmetric information amplifies borrowing costs: BIS paper

bis-1

A Bank for International Settlements paper, published on Friday, shows that participant banks with information inferiority are charged higher spreads than more senior borrrowers, with the effect amplified for more opaque borrowers.

Blaise Gadanecz, Alper Kara and Philip Molyneux, the paper's authors, use a sample of 5,842 syndicated loan transactions between 1993 and 2006 to capture the effects of information asymmetries in the syndicated loan market, taking into account the previous number of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: