Large debt financing: syndicated loans versus corporate bonds

Following the introduction of the euro, the markets for large debt financing experienced a historical expansion. We investigate the financial factors behind the issuance of syndicated loans for an extensive sample of euro area non-financial corporations. For the first time we compare these factors to those of its major competitor: the corporate bond market. We find that large firms, with greater financial leverage, more (verifiable) profits and higher liquidation values tend to prefer syndicated loans. In contrast, firms with larger levels of short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds. JEL Classification: D40, F30, G21corporate bonds, debt choice, syndicated loans, the euro

Securitization and lending standards: evidence from the wholesale loan market

We investigate the effect of securitization activity on banks’ lending standards using evidence from pricing behavior on the syndicated loan market. We find that banks more active at originating asset-backed securities are also more aggressive on their loan pricing practices. This suggests that securitization activity lead to laxer credit standards. Macroeconomic factors also play a large role explaining the impact of securitization activity on bank lending standards: banks more active in the securitization markets loosened more aggressively their lending standards in the run up to the recent financial crisis but also tightened more strongly during the crisis period. As a continuum of this paper we are examining whether individual loans that are eventually securitized are priced more aggressively by using unique European data on individual loans from all major trustees. JEL Classification: G21, G28bank risk taking, financial crisis, securitization, syndicated loans

Coherently complete algebraic stacks in positive characteristic

With the long-term goal of proving local structure theorems of algebraic stacks in positive characteristic near points with reductive (but possibly non-linearly reductive) stabilizer, we conjecture that quotient stacks of the form $[\mathrm{Spec}\, A/G]$, with $G$ reductive and $A^G$ complete local, are coherently complete along the unique closed point. We establish this conjecture in two interesting cases: (1) $A^G$ is artinian and (2) $G$ acts trivially on $\mathrm{Spec}\, A$. We also establish coherent completeness results for graded unipotent group actions. In order to establish these results, we prove a number of foundational statements concerning cohomological and completeness properties of algebraic stacks -- including on how these properties ascend and descend along morphisms.Comment: 35 pages, comments welcome

Bank reputation and securitization quality:European evidence

We examine the link between issuer bank reputation and the performance of mortgage-backed securities (MBS) in the European market. We find that MBS sold by reputable issuer banks are collateralised by higher quality asset pools with lower delinquency rates and are less likely to be downgraded. However, during boom periods – characterized by declining credit standards, MBS originated by reputable issuer banks tend to be collateralised by lower quality assets, compared to normal periods

AFRP retrofit of reinforced concrete columns against impact loading

Structures can be exposed to impact loads as a result of an explosion, falling objects, projectiles and vehicle collisions. Within the increasing threat of these impact sources, it is very important to protect the columns that are the vital members of the structural systems to ensure structural and personal safety. This study focuses on the performance of axially loaded reinforced concrete members subjected to impact loading. A dropped-weight test set-up developed to perform impact tests on reinforced concrete members. The test set-up was used to perform low elevation impact tests on reinforced concrete (RC) columns that targets to simulate vehicular impact against ground floor columns of low-rise buildings. Since, there is limited information about the transverse impact performances of RC columns; the main objective of this research is to assess the vulnerability of RC columns under transverse impact loads and to enhance their performances by using Aramid Fiber Reinforced Polymer (AFRP) sheets. The scope is limited to 300 mm square columns with 3 m height in low to medium rise buildings which were found to be more vulnerable to lateral impacts according to previous research conducted by the authors, (Gurbuz et al. 2010, 2011). This research provides fundamental knowledge on the behavior of RC columns under low elevation impact loading and also generates new information on impact strengthening of vulnerable concrete columns by AFRP sheets