Plausibly Exogenous [1937] - Collateral (05/23/2025)

LHS Variable
Borrower quality and loan terms

RHS Variable
Collateral

Source of Exogenous Variation
Change in the Swedish law that exogenously reduced the value of all outstanding company mortgages, i.e., a type of collateral that is comparable to the floating lien

- Cerquelro, Ongena, and Roszbach (2012), “Collaterlization, bank loan rates and monitoring: Evidence from a natural experiment”