Abstract
Eurocredit pricing to sovereign borrowers was analyzed for the period leading up to the international debt crisis. The return variable measured both fees and spread, instead of spread alone. The importance in pricing of objective and subjective indicators of country‐risk, loan characteristics, and regional factors were examined. The analysis revealed a discrepancy between a perceptual measure and an objective measure of country‐risk. Eurocredit pricing was not positively related to loan size and maturity, commonly viewed as increasing risk, and may have also been influenced by regional and institutional factors.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 244-258 |
| Number of pages | 15 |
| Journal | Journal of International Financial Management and Accounting |
| Volume | 1 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1989 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Accounting
- Business, Management and Accounting (miscellaneous)
- Finance