Intermediary Frictions and the Corporate Credit Cycle: Evidence from CLOs

I quantify the contribution of intermediary agency frictions to the cyclicality of lending by collateralized loan obligations (CLOs). CLOs’ cost of debt contains significant compensation for agency problems arising from CLOs’ discretion in trading.

Who

Quirin Fleckenstein (HEC Paris)

Where

IWH, conference room and via Zoom

Personal details

Quirin Fleckenstein is an Assistant Professor in Finance at HEC Paris. His research areas are Macro-Finance, Financial Intermediation, and Corporate Finance.