The Real Effects of Credit Line Drawdowns

by Federal Reserve Board

Do firms use credit line drawdowns to finance investment? Using a unique dataset of 467 Standard and Poors COMPUSTAT firms with credit lines, we study the purpose of drawdowns during the 2007-2009 financial crisis. Our data show that credit line drawdowns had already increased in 2007, precisely when disruptions in bank funding markets began to squeeze aggregate liquidity. Consistent with theory, our results confirm that firms use drawdowns to sustain...

• Format: Paperback
• Language: English
• ISBN: 1511467223
• ISBN13: 9781511467223
• Release Date: March 2015
• Publisher: Createspace Independent Publishing Platform
• Length: 54 Pages
• Weight: 0.33 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"