Friday Seminar - "Navigating New Norms: The Response of LBO Financing to Post-Crisis Regulation and Market Shifts" - Rüdiger Fahlenbrach (EPFL)
"Navigating New Norms: The Response of LBO Financing to Post-Crisis Regulation and Market Shifts"
Abstract: Banks incurred large losses from their exposure to committed but unfunded LBO deals during the global financial crisis. Post-crisis, banks significantly changed their LBO lending practices. Private equity sponsors provide about 40% more equity. Lending syndicates are larger, per lender exposure decreased, and non-banks provide more of the term funding. The portion of LBO debt retained by the lead arranger and not passed through became more expensive compared to debt held by non-banks. Investigating what explains these changes, we find evidence that the regulation of leveraged lending and shifts in the syndicated loan market significantly influenced banks’ LBO lending post-crisis.
related events
Friday Seminar - Gerard Hoberg (University of Southern California)
Aula, SSE main building, entrance via Bertil Ohlins Gata 4 at 10:30
Friday Seminar - "Causal Narratives" - Constantin Charles (LSE)
Room A720, SSE main building, entrance via Bertil Ohlins Gata 4 at 10:30
Brown Bag Seminar - Jan Starmans (SHoF/SSE)
Room A720, SSE main building, entrance via Bertil Ohlins Gata 4 at 12:05