On the benefits of concurrent lending and underwriting
Publication
, Journal Article
Drucker, S; Puri, M
Published in: Journal of Finance
December 1, 2005
This paper examines whether there are efficiencies that benefit issuers and underwriters when a financial intermediary concurrently lends to an issuer while also underwriting its public securities offering. We find issuers, particularly noninvestmentgrade issuers for whom informational economies of scope are likely to be large, benefit through lower underwriter fees and discounted loan yield spreads. Underwriters, both commercial banks as well as investment banks, engage in concurrent lending and provide price discounts, albeit in different ways. We find concurrent lending helps underwriters build relationships, increasing the probability of receiving current and future business.
Duke Scholars
Altmetric Attention Stats
Dimensions Citation Stats
Published In
Journal of Finance
DOI
ISSN
0022-1082
Publication Date
December 1, 2005
Volume
60
Issue
6
Start / End Page
2763 / 2799
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
Citation
APA
Chicago
ICMJE
MLA
NLM
Drucker, S., & Puri, M. (2005). On the benefits of concurrent lending and underwriting. Journal of Finance, 60(6), 2763–2799. https://doi.org/10.1111/j.1540-6261.2005.00816.x
Drucker, S., and M. Puri. “On the benefits of concurrent lending and underwriting.” Journal of Finance 60, no. 6 (December 1, 2005): 2763–99. https://doi.org/10.1111/j.1540-6261.2005.00816.x.
Drucker S, Puri M. On the benefits of concurrent lending and underwriting. Journal of Finance. 2005 Dec 1;60(6):2763–99.
Drucker, S., and M. Puri. “On the benefits of concurrent lending and underwriting.” Journal of Finance, vol. 60, no. 6, Dec. 2005, pp. 2763–99. Scopus, doi:10.1111/j.1540-6261.2005.00816.x.
Drucker S, Puri M. On the benefits of concurrent lending and underwriting. Journal of Finance. 2005 Dec 1;60(6):2763–2799.
Published In
Journal of Finance
DOI
ISSN
0022-1082
Publication Date
December 1, 2005
Volume
60
Issue
6
Start / End Page
2763 / 2799
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment