Agenda

12 Jun 2025 13:00

Sevket Camoglu

Sala Partesotti, San Giobbe Economics Campus + online

Sevket Camoglu (Ca' Foscari University of Venice) - Nonbank Lending, Private Firms, and Credit Cycles

Abstract:
This paper examines how the increasing presence of non-bank lenders in the U.S. syndicated loan market affects credit cycle dynamics and their transmission to private firms. We document several key findings: (1) Non-bank lenders account for a substantial share of syndicated loan volume. (2) Loans to private firms comprise a significant portion of this market—reaching up to 60% in recent years—but receive 37% less loan volume and pay spreads that are 30 basis points higher than those of public firms (the cost of being private). (3) Non-banks are key providers of credit to private firms, particularly during periods of favorable economic conditions, partially offsetting the cost of being private. (4) Nonetheless, both non-bank lending and credit to private firms exhibit procyclical patterns, amplifying financial constraints during downturns. These results highlight the procyclical nature of non-bank lending and its strong ties to private firms, suggesting that the rise of non-bank syndicated loans has reinforced the increasing reliance on private firm financing. Our findings underscore the importance of understanding this dynamic for the functioning of credit markets.

 

The seminar can be attended also remotely, connecting to ZOOM.

Link Zoom: bit.ly/insem-2425
ID riunione:  880 2639 9452
Passcode: InSem-2425

Language

The event will be held in English

Organized by

Department of Economics (InSeminars)

Link

http://bit.ly/insem-2425

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