Ownership and Asymmetric Information Problems in the Corporate Loan Market

Ownership and Asymmetric Information Problems in the Corporate Loan Market
Author: Lewis Gaul
Publisher: CreateSpace
Total Pages: 32
Release: 2015-01-01
Genre:
ISBN: 9781505310306

In credit markets, asymmetric information problems arise when borrowers have private information about their creditworthiness that is not observable by lenders. If these informational asymmetries do not negatively affect lenders' profitability, then they are irrelevant to lenders.