3.2.5 Loan-specific characteristics
Wittenberg-Moerman (2008) and Sufi (2007) find that loans of profit, public firms with
available credit ratings, or syndicated by reputable arrangers are traded at low bid-ask
spreads. Likewise, Wittenberg-Moerman (2008) finds that distressed loans, revolver loans,
and loans issued by institutional investors are traded at high bid-ask spread. While we do
not have access to the reputation of the arranger, we include other available variables such