01922cas a2200265 a 4500 AALejournalIMF017383 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475572377 1018-5941 BD-DhAAL BD-DhAAL Lee, Seung. Risk Taking and Interest Rates : Evidence from Decades in the Global Syndicated Loan Market / Seung Lee, Lucy Qian Liu, Viktors Stebunovs. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (47 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study how low interest rates in the United States affect risk taking in the market of crossborder leveraged corporate loans. To the extent that actions of the Federal Reserve affect U.S. interest rates, our analysis provides evidence of a cross-border spillover effect of monetary policy. We find that before the crisis, lenders made ex-ante riskier loans to non- U.S. borrowers in response to a decline in short-term U.S. interest rates, and, after it, in response to a decline in longer-term U.S. interest rates. Economic uncertainty and risk appetite appear to play a limited role in explaining ex-ante credit risk. Our results highlight the potential policy challenges faced by central banks in affecting credit risk cycles in their own jurisdictions. Mode of access: Internet Liu, Lucy Qian. Stebunovs, Viktors. IMF Working Papers; Working Paper ; No. 2017/016 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/016/001.2017.issue-016-en.xml IMF e-Library