Financial Covenants and Outside Rating as Factors Restricting Information Asymmetry on the Syndicated Loan Market

• Autorzy: Paweł Niedziółka
• Języki publikacji: EN

Abstrakty

EN

Recently, the syndicated credit market has been developing very dynamically, which on the one hand was caused by relatively high profitability on the secondary market (despite a downward tendency and ever increasing use of the market flex clause) and on the other, by a low share of default exposures. The observed structural changes indicate a growing importance of credits with speculative ratings and consequently with a higher credit risk. The development of the market of syndicated credits, which in Poland perform the function of the most important instruments of credit risk transfer, is determined by the issue of instruments monitoring debtor's economic and financial position when there is a lack of direct relation between the debtor and crediting banks. The issue becomes especially important in the view of repeatedly identified dichotomic division of the market into arranging and crediting banks. The aim of this article is to define covenants and outside ratings' potential as crucial (next to the Marking-To-Market evaluation) factors restricting information asymmetry and increasing possibilities of exposure monitoring by crediting banks. (original abstract)

Słowa kluczowe

PL

Rynek kredytów; Kredyt konsorcjalny; Kowenanty finansowe

EN

Credit market; Syndicated loan; Financial covenant

• Czasopismo: Studia i Prace Kolegium Zarządzania i Finansów / Szkoła Główna Handlowa
• Rocznik: 2007
• Numer: z. 83
• Strony: 74-85

Twórcy

autor

Paweł Niedziółka

• Szkoła Główna Handlowa w Warszawie

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