63
IRUS Total
Downloads

Distressed debt restructuring in the presence of credit default swaps

File Description SizeFormat 
DDRCDS.pdfAccepted version205.54 kBAdobe PDFView/Open
BEDENDO_et_al-2016-Journal_of_Money,_Credit_and_Banking.pdfPublished version194.94 kBAdobe PDFView/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
Appears in Collections:Imperial College Business School



Unless otherwise indicated, items in Spiral are protected by copyright and are licensed under a Creative Commons Attribution NonCommercial NoDerivatives License.

Creative Commons