Corporate Loan Spreads and Economic Activity
Anthony Saunders, Alessandro Spina, Sascha Steffen, Daniel Streitz
Review of Financial Studies,
Vol. 38 (2),
2025
Abstract
We use secondary corporate loan-market prices to construct a novel loan-market-based credit spread. This measure has considerable predictive power for economic activity across macroeconomic outcomes in both the U.S. and Europe and captures unique information not contained in public market credit spreads. Loan-market borrowers are compositionally different and particularly sensitive to supply-side frictions as well as financial frictions that emanate from their own balance sheets. This evidence highlights the joint role of financial intermediary and borrower balance-sheet frictions in understanding macroeconomic developments and enriches our understanding of which type of financial frictions matter for the economy.
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Research Clusters
Three Research Clusters Each IWH research group is assigned to a topic-oriented research cluster. The clusters are not separate organisational units, but rather bundle the…
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Organisation of Research
Tasks of the IWH Guided by its mission statement , the IWH places the understanding of the determinants of long term growth processes at the centre of the research agenda. Long…
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Monitoring Interim Report We are pleased to announce that the first interim report for the project is now available for publication, offering stakeholders a comprehensive overview…
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Economic Outlook
IWH Economic Outlook 2026 Slight Upturn on the Horizon, Structural Problems Remain December 11, 2025 As the year draws to a close, it remains uncertain whether the German economy…
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IWH EXplore
IWH EXplore Competitive Funding for Research Projects with External Involvement at IWH IWH EXplore gives scientists the opportunity to acquire supplemental funding, in addition to…
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Mittelfristige Projektion der gesamtwirtschaftlichen Entwicklung und Szenarien für die Erreichung der gesetzlichen Emissionsziele
Andrej Drygalla, Katja Heinisch, Oliver Holtemöller, Axel Lindner, Alessandro Sardone, Christoph Schult, Götz Zeddies
Konjunktur aktuell,
No. 4,
2024
Abstract
Das Produktionspotenzial der deutschen Wirtschaft wächst mittelfristig (2023 bis 2029) mit einer jahresdurchschnittlichen Rate von 0,3% und damit deutlich schwächer als in den Jahren zuvor. Dies ist auf eine ungünstigere Entwicklung aller drei Faktoren (Arbeitsvolumen, Kapitalstock, totale Faktorproduktivität) zurückzuführen. Das potenzielle Wachstum wird insbesondere durch den Rückgang der durchschnittlichen Arbeitszeit gedämpft.
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Macroeconomic Reports Local and global: IWH regularly provides current economic data – be it about the state of the East German economy, the macroeconomic development in Germany…
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