The Role of Networks in Loan Syndicate Markets

The authors thank Kirsten Anderson, Sreedhar Bharath, Alex Butler, Sandeep Dahiya, Colleen Faherty, Ben Golub, William Grieser, Octavian Ionici, Ivan Ivanov, Stephan Pitschner, and Ali Sanati for valuable input. This paper significantly benefited from the comments of seminar participants at the Federal Reserve Board, Rice University, the University of Chicago, the Financial Management Association, and the European Financial Management Association. The authors are particularly thankful to Jason Scott (JP Morgan Chase) and Bram Smith (Loan Syndication and Trading Association) for valuable insights into the syndicated loan bidding process. Part of this work was completed while Ioannis Spyridopoulos was visiting at the Chicago Booth School of Business, whose hospitality is gratefully acknowledged. All errors are the authors’ own. The views in this paper are solely the authors’ views and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System or of any other person associated with the Federal Reserve System.