Weak Credit Covenants

The authors thank Jeff Boyar, Botir Kobilov, Dolly Yu, Jipeng Liu, and James Blume for excellent research support and Patrick Bolton, Jonathan Cohn (Financial Intermediation Research Society discussant), Croci Ettore (discussant), Viktar Fedaseyeu (discussant), Denis Gromb, Andres Liberman (discussant), Greg Nini (Western Finance Association discussant), Mike Schwert, and seminar and conference participants at Harvard University, New York University, Northwestern University, University of Minnesota, University of St Gallen, Ludwig Maximilian University, the 2019 WFA, the 2019 FIRS, the 2018 European Finance Association meetings, the 2017 Yale Junior Finance Conference, and the 2017 Paris Finance meeting. All errors are ours only.