The introduction of market-based pricing in corporate lending

Ivan Ivanov, João A. C. Santos, Thu Vo

Research output: Contribution to journalArticlepeer-review


We describe a recent innovation in the corporate lending business whereby banks tie the interest rate during the life of the loan to the borrowers’ credit default swap spreads or to a CDS index. We also discuss the potential impact this innovation may have on bank lending and more generally on financial intermediation and identify some potential adverse effects it may have for the stability of the financial system.
Original languageEnglish
Pages (from-to)1-5
Number of pages10
JournalJournal of Financial Perspectives
Issue number1
Publication statusPublished - Mar 2014


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