Renegotiation and the pricing structure of sovereign bank loans: Empirical evidence

Private sector share of external debt and financial stability: Evidence from bank loans

“…8 6 Notice that, while inflation is used for the baseline model estimated with OLS, it is then used as an instrument in the instrumental variables estimator. 7 Consistent with, e.g., Hallak (2009) …”

“…Consistent with previous literature on international debt pricing, the dependent variable is the logarithm of the interest spread (e.g., Akitoby and Stratmann, 2008;Eichengreen and Mody, 2000;Hallak, 2009). …”

“…Other explanatory variables are standard macroeconomic and debt indicators, used by, e.g., Arteta and Hale (2008), Alesina and Wacziarg (1998), Beck et al (2008), Eichengreen and Mody (2000), Hallak (2009), andHauner (2009). The country's Macroeconomic Environment includes Investment, the national investment share of GDP; Openness, the sum of exports and imports relative to GDP; and Inflation, the annual growth rate of the consumption price index.…”

Why Larger Lenders Obtain Higher Returns: Evidence from Sovereign Syndicated Loans

“…The minimum and maximum upfront fees (received by the smallest and largest lenders that join the syndicate during the general syndication stage) are, on average, 32 and 52 basis points, respectively. The 52 basis point figure for the average maximum upfront fee is lower than the 74.3 basis points reported in Hallak (2009), but his data set includes publicly owned firms in addition to sovereign borrowers.…”

“…Hallak (2009) is the only other paper that reveals that the pricing of loans is affected by the likelihood of borrower liquidity problems. Using a sovereign loans data set, he confirms that anticipated borrower liquidity problems have a positive effect on the upfront fee the lender(s) charge but do not impact the interest spread.…”