Anchoring on credit spreads

• Autores: Casey Dougal, Joseph Engelberg, Christopher A. Parsons, Edward D. Van Wesep
• Localización: The Journal of finance, ISSN 0022-1082, Vol. 70, Nº 3, 2015, págs. 1039-1080
• Idioma: inglés
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• Resumen

  • This paper documents that the path of credit spreads since a firm's last loan influences the level at which it can currently borrow. If spreads have moved in the firm's favor (i.e., declined), it is charged a higher interest rate than is justified by current fundamentals, whereas if spreads have moved to the firm's detriment, it is charged a lower rate. We evaluate several possible explanations for this finding, and conclude that anchoring to past deal terms is most plausible.