Large debt financing: Syndicated loans versus corporate bonds

Yener Altunbaş, Alper Kara, David Marques-Ibanez

Research output: Working paper


Following the introduction of the euro, the markets for large debt financing experienced a historical expansion. We investigate the financial factors behind the issuance of syndicated loans for an extensive sample of euro area non-financial corporations. For the first time we compare these factors to those of its major competitor: the corporate bond market. We find that large firms, with greater financial leverage, more (verifiable) profits and higher liquidation values tend to prefer syndicated loans. In contrast, firms with larger levels of short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds.
Original languageEnglish
PublisherEuropean Central Bank
Number of pages37
Publication statusPublished - Mar 2009
Externally publishedYes

Publication series

NameECB Working Paper Series
PublisherEuropean Central Bank
ISSN (Electronic)1725-2806


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