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Agree to Differ: Within-Syndicate Dispute and you will Syndicated Mortgage Hiring

by iNan-cextra on 24/06/2024 , No comments

Current studies show one twin owners-which is, associations one to at the same time keep equity and you can loans of the same firm-internalize the new stockholder-creditor disagreement and you can bring about bonus alignment between the two people (Jiang ainsi que al. not, minimization of stockholder-collector dispute happens at the cost of launching a different sort of disagreement among financial institutions. Loan providers carrying higher collateral stakes when you look at the borrower agencies may have very different incentives than financial institutions carrying really small if any equity bet. Which dispute anywhere between loan providers can be hence affect ex-ante personal debt hiring and ex-post personal debt renegotiation.

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iNan-cextraAgree to Differ: Within-Syndicate Dispute and you will Syndicated Mortgage Hiring