---
title: Firms' Investment and the Real Transmission of the Global Financial Cycle
url: https://www.ml-quant.com/papers/repec/nbr-nberwo-35918/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-30
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:nbr:nberwo:35918
source_url: https://econpapers.repec.org/RePEc:nbr:nberwo:35918
featured: 2026-10-30
citations: unknown
topic: Macro-Finance & Rates
---


# Firms' Investment and the Real Transmission of the Global Financial Cycle

The study shows that rising risk premia trigger large investment contractions, especially among risky firms, through a channel linking global price of risk to financing costs via firm debt sensitivity.

- Source: https://econpapers.repec.org/RePEc:nbr:nberwo:35918
- Identifier: RePEc:nbr:nberwo:35918
- Released: 2026-10-26
- First featured: Quant Letter No. 137 (2026-10-30): https://www.ml-quant.com/issues/2026-10-30/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Caitlin Hegarty, Matias Moretti, Pablo Ottonello, Diego J. Perez

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