Publications
Zombie Credit and (Dis-)Inflation: Evidence from Europe
Journal of Finance, forthcoming.
Co-authors: V. Acharya, T. Eisert, C. Eufinger
Paper · BibTeX · VoxEU · WSJ · FT
Pirates without Borders: the Propagation of Cyberattacks through Firms’ Supply Chains
Journal of Financial Economics, 147(2), February 2023, 432-448. Editor’s choice.
Co-author: Marco Macchiavelli and André Silva
Paper · BibTeX · Google Scholar
The Anatomy of the Transmission of Macroprudential Policies
Journal of Finance, 77(5), October 2022, 2533-2575. Lead article.
Co-author: Viral Acharya, Katharina Bergant, Tim Eisert, Fergal McCann
Paper · BibTeX · Google Scholar · Online Appendix
Bank Capital, Government Bond Holdings, and Sovereign Debt Capacity
Journal of Financial Economics, 141(2), August 2021, 693-704.
Klaus Liebscher Award.
Paper · BibTeX · Google Scholar
The Design and Transmission of Central Bank Liquidity Provisions
Journal of Financial Economics, 141(1), July 2021, 27-47.
Co-author: Luisa Carpinelli
ECB Young Economist Award.
Paper · BibTeX · Google Scholar
The (Unintended?) Consequences of the Largest Liquidity Injection Ever
Journal of Monetary Economics, 112, June 2020, 97-112.
SUERF/UniCredit Foundation Research Prize.
Co-authors: Miguel Faria-e-Castro and Luìs Fonseca
Paper · BibTeX · Google Scholar
Working Papers
Exorbitant Privilege? Quantitative Easing and the Bond Market Subsidy of Prospective Fallen Angels
Co-authors: Viral Acharya, Ryan Banerjee, Tim Eisert, Renée Spigt, May 2023
AFA 2022 · EFA 2022 · NBER SI EFEL 2021 · Oxford Macro-Finance 2021 · NBER SI CF/RISK 2022
Paper · BibTeX · Liberty Street · FT · Bloomberg
Abstract: We document capital misallocation in the U.S. investment-grade (IG) corporate bond market, driven by quantitative easing (QE). Prospective fallen angels—risky firms just above the IG cutoff—enjoyed subsidized bond financing in 2009-19. This effect is driven by prolonged cumulative Fed purchases of securities inducing long-duration IG-focused investors to rebalance their portfolios towards higher-yielding IG bonds. The benefiting firms (i) exploited the sluggish downward adjustment of credit ratings after M&A to finance risky acquisitions with bond issuances, (ii) increased market share affecting competitors’ employment and investment, but (iii) suffered severe downgrades at the onset of the pandemic.
Stakeholders’ Aversion to Inequality and Bank Lending to Underserved Borrowers
Co-author: Hanh Le
MoFiR 2023
Abstract: We find that banks differ in their propensity to lend to underserved borrowers based on their stakeholders’ aversion to inequality. Using mortgage application data collected under the Home Mortgage Disclosure Act, we (i) document substantial cross-sectional heterogeneity in banks’ willingness to lend to underserved borrowers and (ii) find that banks with more inequality-averse clientele and executives are more likely to lend to non-white borrowers and borrowers in high-minority and low-income areas. This higher propensity (i) responds to the saliency of stakeholders’ inequality aversion, (ii) is rewarded with deposits by inequality-averse depositors, and (iii) does not predict worse ex-post loan performance.
Other Papers
Zombie Lending: Theoretical, International, and Historical Perspectives
Annual Review of Financial Economics, 14, 2022.
Co-authors: Viral Acharya, Tim Eisert, Sascha Steffen
Paper · Working Paper · BibTeX