The Loan Covenant Channel: How Bank Health Transmits to the Real Economy

Gabriel Chodorow-Reich, Antonio Falato

NBER Working Paper No. 23879
Issued in September 2017, Revised in June 2020

---- Acknowledgments ----

We thank Dan Andrews (discussant), Indraneel Chakraborty (discussant), Arpit Gupta (discussant), Marcel Jansen (discussant), Justin Murfin (discussant), Michael Roberts (discussant), David Scharfstein, Andrei Shleifer, Jeremy Stein, Amir Sufi, participants at the 2017 St. Louis Fed STLAR conference, 2017 Bank Of Spain Conference on Financial Stability, the 2017 NBER ME summer meeting, the 2017 Advances in Macro Finance Tepper-Laef Conference, the 2017 NBER CF fall meeting, the 2018 IMF Annual Macro-Financial Research Conference, the 2018 NYU/Stern Conference on Financial Intermediation, the 2019 AEA meetings, and seminar participants at Columbia University, Federal Reserve Bank of San Francisco, London Business School, MIT, NOVA School of Business and Economics, Ohio State, Stanford, UCLA Anderson, U. of Chicago, and UT Austin for helpful comments and Ivan Ivanov for sharing snow cover data with us. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Board of Governors, the Federal Reserve System, or the National Bureau of Economic Research.

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