Plausibly Exogenous [1971] - Non-Price Terms (06/26/2025)

LHS Variable
Interest rates

RHS Variable
Non-price loan terms

Source of Exogenous Variation
A regulatory shock (2014 Leveraged Lending Clarification) that restricted banks, but not non-banks, from offering covenant-lite loans

- Abuzov, Herpfer, and Steri (2024), “Do Banks Compete on Non-Price Terms? Evidence from Loan Covenants”