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Loan Contract Terms

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Encyclopedia of Finance

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Abstract

Loan contract terms refer to the price and nonprice terms associated with a corporate loan deal between a borrower and a lender or a syndicate of lenders. The specification of loan contract terms differs across loans. These differences are attributable to the tradeoffs between values of loan contract terms that the borrower chooses when negotiating the loan contract, as well as the purpose of the loan and borrower and lending syndicate characteristics. Methodological issues that arise when investigating the relations between loan contract terms include allowing for loan contract terms that are determined simultaneously and accurately estimating credit risk.

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Authors and Affiliations

  1. Pace University, New York, NY, USA

    Aron A. Gottesman

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  1. Aron A. Gottesman
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Correspondence to Aron A. Gottesman .

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Editors and Affiliations

  1. Dept. Finance, Rutgers University, Rockafeller Road 94, New Brunswick, 08854-8054, New Jersey, USA

    Cheng-Few Lee

  2. College of Business, San Francisco State University, Holloway Ave. 1600, San Fransisco, 94132, California, USA

    Alice C. Lee

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Gottesman, A.A. (2013). Loan Contract Terms. In: Lee, CF., Lee, A. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-5360-4_15

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  • DOI: https://doi.org/10.1007/978-1-4614-5360-4_15

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  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4614-5359-8

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