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We examined the perceived risk of Brexit referendum (BR) in the United Kingdom (UK) securitization market, using 1,021 securitized bonds issued between 2011 and 2018. We find an unexpected negative relationship between the BR outcome and the initial yield spreads of asset-backed securities (ABS), even after accounting for the downward-adjusted credit ratings in the post-BR period. We do not observe this effect on mortgage-backed securities (MBS). Our findings imply that investors diversified into ABS bonds under uncertainty in the post-BR period. [ABSTRACT FROM AUTHOR]

This paper investigates household access to consumer credit in the UK using information on 58,642 households between 2001 and 2009. Employing a treatment-effects model and propensity score matching, we find that non-white households are less likely to have financing compared to white households. We also find that even if they obtain financing, the intensity of borrowing is lower than for white households. Overall, non-white households seem to be in a weaker position to access consumer credit in the UK. [ABSTRACT FROM PUBLISHER]

This paper examines the determinants of banks' involvement in loan syndication using the financial information of 847 participant banks. The results indicate that participant banks join loan syndications when their capital levels are sufficient enough to support the extra risk taken. Banks with lower net interest margin are found to choose syndicated lending as a way of boosting their margins. The motivation of risk diversification through participating in loan syndications is also confirmed. [ABSTRACT FROM AUTHOR]

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 choose syndicated loans. In contrast, firms with more short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds. Syndicated loans are the preferred instrument at the extreme where firms are very large, profitable but have less growth opportunities. [ABSTRACT FROM AUTHOR]

This paper provides a historical perspective on the development of the global syndicated loan market, where $2.6 trillion worth of funds were raised in 2004. The emergence of the Eurodollar market in the 1960s, the balance of payments problems of non-oil-exporting emerging countries in the 1970s, the Latin American financial crises and the US merger wave of the 1980s, and finally the competitive financial environment and the emergence of the secondary loan market during the 1990s are reviewed. These have been the most influential financial developments that shaped the syndicated loan markets in the last few decades. [ABSTRACT FROM AUTHOR]

The impact of banks' financial characteristics on their decisions to participate in loan syndications is assessed. From the analysis, it appears that poorly performing banks tend, on average, to be more involved in syndications. Policymakers should perhaps monitor more closely the concentration of credit risk associated with syndicated loans held on the books of under-performing banks. [ABSTRACT FROM AUTHOR]