Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223448 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8376
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
We show that U.S. dollar movements affect syndicated loan terms for U.S. borrowers, even for those without trade exposure. We identify the effect of dollar movements using spread and loan amount adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by up to 15 basis points and reduces loan amounts and underpricing by up to 2 percent and 7 basis points, respectively. These effects are concentrated in dollar appreciations. Our results suggest that global factors reflected in the dollar determine U.S. borrowing costs.
Subjects: 
loan pricing
syndicated loans
dollar
institutional investors
risk taking
JEL: 
F15
G15
G21
G23
Document Type: 
Working Paper
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