Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/284071 
Erscheinungsjahr: 
2023
Schriftenreihe/Nr.: 
Working Paper No. WP 2023-30
Verlag: 
Federal Reserve Bank of Chicago, Chicago, IL
Zusammenfassung: 
We study the determinants of local governments' reliance on bank loans using granular data from the Federal Reserve. Governments that are larger, rely on stable revenue sources, or have higher spending relative to revenues are more likely to borrow from banks. About a third of governments in the top revenue quintile have obtained bank loans since 2011, typically accounting for a fifth of their total debt. Declines in revenues, reductions in bond market access, agency rating downgrades, and relationships with financial advisers and underwriters all strongly predict higher bank loan reliance. While resemblance between bank loans and bonds is limited, loans afford governments significant financial flexibility not otherwise available in the municipal bond market. The frequent loan renegotiation and credit line use are both highly responsive to changes in credit quality, thereby tailoring debt contracts to changes in government fundamentals.
Schlagwörter: 
local government borrowing
debt heterogeneity
fiscal shocks
JEL: 
H74
G21
G32
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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