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SUMMARY:Financial Flexibility under Non-Exclusive Lending
DTSTART:20261009T110000
DTEND:20261009T131500
DTSTAMP:20261006T105424Z
UID:2b091f61a217bea215c4029581909823306f6551eac4bc8692dc3e0d
CATEGORIES:Conferences - Seminars
DESCRIPTION:Yunzhi Hu - The University of North Carolina\nThis paper studi
 es optimal financial flexibility in debt issuance. A borrower raises funds
  for an initial investment and may need financing after observing a privat
 e liquidity shock. Under non exclusive lending\, new lenders price only th
 eir claims\, so additional borrowing dilutes existing debt and leads to ex
 cessive leverage. The optimal simple debt contract is an endogenous debt l
 imit. It captures the intertemporal commitment–flexibility tradeoff: mor
 e borrowing today fi nances investment but increases dilution incentives\,
  requiring tighter limits on future borrowing. Richer clauses\, including 
 performance-sensitive debt and contingent prepayment provisions\, re store
  the exclusive-lending benchmark by compensating existing lenders when new
  financing is raised.
LOCATION:UNIL\, Extranef\, room 126
STATUS:CONFIRMED
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