Journal Article

Do Adverse Oil Price Shocks Change Loan Contract Terms for Energy Firms?


Abstract: This article examined whether the relationship between creditworthiness and loan spreads for energy firms in the syndicated loan market changed after the 2014 oil-price shock. {{p}} The authors use syndicated loans, which are jointly funded by several financial institutions, because the syndicated loan market is a major source of debt financing for oil firms. Credit conditions tightened following the oil-price shock in mid-2014.

Keywords: oil price shocks; Oil firms; Syndicated loans; Oil prices; Energy; Oil industry;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2017

Issue: Q IV

Pages: 59-86