Discussion Paper
Examining the Relationship Between Loan Pricing and Credit Risk
Abstract: In this note, we focus on examining bank lenders' pricing of credit risk, and how higher loan interest rates may serve as compensation for higher credit losses. First, we study the extent to which loan-level and regional-level risk is priced at the product level.
https://doi.org/10.17016/2380-7172.3876
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: FEDS Notes
Publication Date: 2025-09-24
Number: 2025-09-24-1