Performance-Sensitive Debt

By Gustavo Manso, Bruno H. Strulovici, Alexei Tchistyi. 2010

145 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7965e6916f3c8ad25a2ffb752d62318ab58e8938

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Citations in the corpus

Contingent Convertible Bonds and Capital Structure Decisions (2010, background): “It’s easy to see that if λ = 0, based on equation (13), Πt < Πt and, therefore, CCB holders do not have an incentive to manipulate the market.”
Do Rating Agencies Cater? Evidence from Rating-Based Contracts (2015, unknown): “When loan contracts use credit ratings to enforce restrictions on borrowers, rating changes directly impact borrowers’ cash flows by changing the contractual interest rate or requiring early principal repayment (Nicholls (2005)).”
Feedback effects of credit ratings (2013, methodology): “…debt, I rely on previous work, which has argued that borrowers issue performance-sensitive debt in response to adverse selection (Manso, Strulovici, and Tchistyi (2010)) or moral hazard (Tchistyi (2011)) problems.14 Therefore, assuming these benefits associated with…”
The Real Effects of Credit Ratings: The Sovereign Ceiling Channel (2017, background): “Sovereign downgrades also tend to happen in periods of global financial turmoil, 2For example, performance-sensitive debt may incorporate either explicit or implicit performance pricing provisions that depend on credit ratings (Manso, Strulovici, and Tchistyi (2010)).”
The total costs of corporate borrowing in the loan market: Don't ignore the fees (2015, unknown): “The role of performance pricing Description: A large percentage of loans includes performance-pricing provisions (Asquith et al. (2005), Manso et al. (2010), Begley (2013), Adam et al. (2014)).”