BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//jEvents 2.0 for Joomla//EN
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
UID:613eeae282b7bf5556247dc6ab12c2e3
CATEGORIES:Seminars
CREATED:20180731T144903
SUMMARY:Denis Gromb - HEC Paris
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:Conflicting Priorities: A Theory of Collateral and Covenants (joint with Ja
 son Donaldson and Giorgia Piacentino )\nAbstract:\nDebt secured by collater
 al has absolute priority in the event of default - it is paid ahead of unse
 cured debt, even if unsecured debt is protected by negative pledge covenant
 s prohibiting new secured debt. We develop a model of how this priority rul
 e leads to conflicts among creditors. But we find that it can be optimal: b
 orrowers’ option to use collateral in violation of covenants allows for the
  dilution of existing debt, and hence prevents underinvestment, whereas cre
 ditors’ option to accelerate debt following a covenant violation deters dil
 ution, and hence prevents over-investment. The optimal outcome is implement
 able via a mix of different types of debt, including secured and unsecured 
 debt with tight and loose covenants. The model explains some  stylized fact
 s about debt structure, covenants, and their violations.\n\n\n \n
DTSTAMP:20260405T192303Z
DTSTART:20181008T163000Z
DTEND:20181008T180000Z
SEQUENCE:0
TRANSP:OPAQUE
END:VEVENT
END:VCALENDAR