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Distressed debt restructuring in the presence of credit default swaps
File | Description | Size | Format | |
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DDRCDS.pdf | Accepted version | 205.54 kB | Adobe PDF | View/Open |
BEDENDO_et_al-2016-Journal_of_Money,_Credit_and_Banking.pdf | Published version | 194.94 kB | Adobe PDF | View/Open |
Title: | Distressed debt restructuring in the presence of credit default swaps |
Authors: | Cathcart, L Bedendo, M El-Jahel, L |
Item Type: | Journal Article |
Abstract: | The availability of credit insurance via credit default swaps has been closely associated with the emergence of empty creditors. We empirically investigate this issue by looking at the debt restructurings (distressed exchanges and bankruptcy filings) of rated, nonfinancial U.S. companies over the period January 2007–June 2011. Using different proxies for the existence of insured creditors, we do not find evidence that the access to credit insurance favors bankruptcy over a debt workout. However, we document higher recovery prices following a distressed exchange in firms where empty creditors are more likely to emerge. |
Issue Date: | 19-Jan-2016 |
Date of Acceptance: | 18-Dec-2014 |
URI: | http://hdl.handle.net/10044/1/32446 |
DOI: | 10.1111/jmcb.12294 |
ISSN: | 1538-4616 |
Publisher: | Wiley |
Start Page: | 165 |
End Page: | 201 |
Journal / Book Title: | Journal of Money, Credit and Banking |
Volume: | 48 |
Issue: | 1 |
Copyright Statement: | © 2016 The Authors. Journal of Money, Credit and Banking published by Wiley Periodicals, Inc. on behalf of Ohio State University This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
Keywords: | Social Sciences Business, Finance Economics Business & Economics credit default swaps empty creditors debt restructuring FINANCIAL DISTRESS EQUITY REORGANIZATION INVESTMENT CHAPTER-11 BANKRUPTCY RESOLUTION EXCHANGES WORKOUTS FIRMS Economics 1401 Economic Theory 1402 Applied Economics 1502 Banking, Finance and Investment |
Publication Status: | Published |
Online Publication Date: | 2016-01-19 |
Appears in Collections: | Imperial College Business School |