The authors thank Gustavo Manso, three anonymous referees, Nageeb Ali, Jonathan Berk, Tony Cookson, Brendan Daley, Andrew Ellul, Brett Green, Rick Harbaugh, Chong Huang, Doron Levit, Brittany Lewis, Marina Niessner, Dmitry Orlov, Joel Sobel, Charles Trzcinka, and Joseph Zechner as well as seminar participants at the University of Oregon, the University of Indiana, the University of Waterloo, the Federal Reserve Bank of Cleveland, the Finance Theory Group, and the 2018 meeting of the Financial Intermediation Research Society for helpful comments. Errors are their own.