Working Paper
The New Bond Workouts
Bond workouts are a famously dysfunctional method of debt restructuring, ridden with opportunistic and coercive behavior by bondholders and bond...
Read more
Credit, Crises and Infrastructure: The Differing Fates of Large and Small Businesses
This essay sheds new light on the importance of credit creation infrastructure in determining who actually receives government support during periods...
Read more
Smart Buyers
We study transactions in which sellers fears being underpaid because their outside option is better known to the buyer. We rationalize various observed...
Read more
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...
Read more
Creditor Control Rights and Board Independence
We find that the number of independent directors on corporate boards increases by approximately 24% following financial covenant violations in credit...
Read more
Loans to Chapter 11 Firms: Contract Design and Pricing
With a hand-collected set of 545 debtor-in-possession (DIP) loan facilities, 2002-2019, we show that these short-term loans are highly...
Read more
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...
Read more
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...
Read more
When Is (Performance-Sensitive) Debt Optimal?
Existing theories of debt consider a single contractible performance measure ("output''). In reality, other performance signals are available. It...
Read more