Bond vs. bank finance and the Great Recession

• Tipo: Artigo em Revista Científica Internacional
• Data: 2021

Autores

Manuel Mota Freitas Martins (Autor) FEP; Verona, F (Autor) Outra

Revista

Título: Finance Research Letters

Vol. 39

ISSN: 1544-6123

Editora: Elsevier

Indexação

ISI Web of Knowledge - 2 Citações

Scopus - 2 Citações

Outras Informações

ID Authenticus: P-00S-6AX

DOI: 10.1016/j.frl.2020.101583

Abstract (EN): The typical increase of the corporate bond-to-bank ratio during downturns is known to mitigate business cycle recessions. In the three longest and deepest post-war U.S. recessions this ratio didn't increase from their outsets. In this paper we focus on the timing of the corporate bank-to-bond substitution in the Great Recession, simulating counterfactual paths for output growth under plausible notional behaviors of the bond-to-bank ratio. We find that the Great Recession would have been milder and the recovery much stronger if the bank-to-bond substitution had started since the outset of the recession and evolved thereafter as in most U.S. recessions.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 6