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dc.contributor.authorHirtle, Beverlyen_US
dc.date.accessioned2012-08-17T14:28:41Z-
dc.date.available2012-08-17T14:28:41Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/60677-
dc.description.abstractCredit derivatives are the latest in a series of innovations that have had a significant impact on credit markets. Using a micro data set of individual corporate loans, this paper explores whether use of credit derivatives is associated with an increase in bank credit supply. We find evidence that greater use of credit derivatives is associated with greater supply of bank credit for large term loans—newly negotiated loan extensions to large corporate borrowers—though not for (previously negotiated) commitment lending. This finding suggests that the benefits of the growth of credit derivatives may be narrow, accruing mainly to large firms that are likely to be “named credits” in these transactions. Further, the impact is primarily on the terms of lending—longer loan maturity and lower spreads—rather than on loan volume. Finally, use of credit derivatives appears to be complementary to other forms of hedging by banks.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 276en_US
dc.subject.jelG21en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordcredit derivatives, risk management, credit supply, bank lendingen_US
dc.subject.stwCredit Default Swapen_US
dc.subject.stwFinanzderivaten_US
dc.subject.stwKreditrisikoen_US
dc.subject.stwRisikomanagementen_US
dc.subject.stwKreditgeschäften_US
dc.subject.stwUSAen_US
dc.titleCredit derivatives and bank credit supplyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn526662085en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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