Debt

Corporate Governance of Banks after the Financial Crisis

LBO Financing

We analyze takeover financing in a model where bidders must overcome the free-rider problem to restore ownership incentives. Bootstrapping,...

Where Do Firms Issue Debt?

The Eclipse of Private Equity

Private equity, characterized by firms operating as privately held partnerships organizing the acquisition and "taking private" of public...

The Sources of Financing Constraints

In order to identify the relevant sources of firms' financing constraints, we ask what financial frictions matter for corporate policies. To that end,...

Bank Reputation in the Private Debt Market

The New Bond Workouts

Bond workouts are a famously dysfunctional method of debt restructuring, ridden with opportunistic and coercive behavior by bondholders and bond...

A Theory of Preferred Stock

Should preferred stock be treated under corporate law as an equity interest in the issuing corporation or under contract law as a senior security? Should...

Institutional Debt Holder Governance

Using data on the universe of US-based mutual funds, we find that two out of five fund families hold corporate bonds of firms in which they also own an equity...

Equity Cross-Listings in the U.S. and the Price of Debt

Fiduciary Duties and Equity-Debtholder Conflicts

We use an important legal event as a natural experiment to examine the effect of management fiduciary duties on equity-debt conflicts. A 1991 Delaware...

Underwriter Competition and Bargaining Power in the Corporate Bond Market

We study the impact of underwriter competition on corporate bond contracts. We develop a new measure of underwriter power and a novel empirical...