SNS/SHOF Finance Panel: Corporate Finance in a Low Interest Rate Environment
Low interest rates have consequences for the cost of making investments, the return on savings, the profitability of financial corporations and many other aspects of financial activity. One area that is sensitive to the level of rates is the design of lending contracts. Studies by Professor Michael Roberts, Wharton University, show that different features of lending contracts, such as spreads over reference rates, interest rate floors, maturities and others are different in a low rate environment compared to a high rate.
The seminar looked at financial contracts in a low rate environment.
Professor Roberts explained his studies, Helena Nordberg, portfolio manager at Svenskt Näringsliv shared her experience from working in a low rate market and Henrik Braconier, chief economist at Finansinspektionen shared his experience and concerns from low interest rates.
The Finance Panel is a meeting forum for the financial sector, hosted by SNS and the Swedish House of Finance.
Swedish House of Finance (SHOF) at the Stockholm School of Economics is Sweden’s national research center in financial economics.
Michael Roberts, professor of Finance at the Wharton School of the University of Pennsylvania.
Henrik Braconier, Chief Economist, Economic Analysis, Finansinspektionen
Helena Nordberg, Fixed Income Manager, Svenskt Näringsliv
The meeting was held in English and was moderated by Pehr Wissén, Professor Emeritus of Practice, Swedish House of Finance.