Loan Spreads

ESG Lending ArXiv ID: ssrn-3865147 “View on arXiv” Authors: Unknown Abstract Firms increasingly borrow via sustainability-linked loans (SLLs), contractually tying spreads to their ESG performance. SLLs vary widely in transparency of disc Keywords: Sustainability-linked loans, ESG performance, Loan spreads, Greenwashing, Credit risk Complexity vs Empirical Score Math Complexity: 4.5/10 Empirical Rigor: 8.0/10 Quadrant: Street Traders Why: The paper employs advanced econometric methods (DID, PSM, stacked DID, synthetic controls) and handles large datasets (LSEG DealScan, Refinitiv, S&P Trucost) with robustness checks, indicating high empirical rigor, but uses standard statistical models without heavy mathematical derivations. flowchart TD A["Research Goal: How do ESG performance & SLL transparency affect loan spreads & credit risk?"] --> B["Methodology: Empirical analysis of loan contracts"] B --> C["Data: SLLs & ESG data from 2016-2022"] C --> D["Computation: Regression models on spread determinants"] D --> E["Outcomes: Lower spreads for ESG performance, less for opaque SLLs"] E --> F["Risk: No significant credit risk reduction, potential greenwashing"]