Business Aggression, Institutional Loans, and Credit Crisis: Evidence from Lending Practices in Leveraged Buyouts

• Main Authors: CAO, Xiaping Jerry, Song, Wei-Ling, MASON, JOE
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Credit crisis; Leveraged buyouts; bank loans; collateralized loan obligations; private equity; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1815; https://ink.library.smu.edu.sg/context/lkcsb_research/article/2814/viewcontent/LendingandLBOLoans.pdf
• Institution: Singapore Management University

This paper investigates the lending practices related to leverage buyouts (LBOs) market between high and low write-down institutions. The write-downs, which are a proxy for business aggression of institutions, are mainly related to credit crisis from the beginning of 2007 to August 10, 2008. We find...