---
title: The Loan Renegotiation Channel of Quantitative Easing
url: https://www.ml-quant.com/papers/ssrn/7622438/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7622438
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7622438
featured: 2026-10-23
citations: unknown
topic: Risk, Credit & Banking
---


# The Loan Renegotiation Channel of Quantitative Easing

Large purchases of mortgage-backed securities prompt exposed banks to renegotiate existing corporate loans on lender-favorable terms, reducing borrower investment by 6 percent.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7622438
- Identifier: SSRN 7622438
- Released: 2026-10-17
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Lin Xie, Mian Liu

## Related

- [Asset Prices, Collateral and Bank Lending: The Case of COVID-19 and Real Estate](https://www.ml-quant.com/papers/ssrn/4470421/): The paper investigates the euro area's banking system's role in transmitting asset price shocks to credit during the Covid-19 crisis, highlighting significant frictions and a decrease in lending related to real estate collateral.
- [Climate Risks in Real Estate](https://www.ml-quant.com/papers/ssrn/5120353/): The study shows how physical climate risks, specifically river floodings, can affect the credit risk parameters and internal capital calibration of banks.
- [Financial Fragilities and Risk-taking of Corporate Bond Funds in the Aftermath of Central Bank Policy Interventions](https://www.ml-quant.com/papers/ssrn/4463970/): It finds that central bank asset purchases during the pandemic led corporate bond fund managers to take more risks, affecting market stability.
- [Financial Instruments for Decarbonization: Likely Pathways for the Romanian Economy](https://www.ml-quant.com/papers/ssrn/4440511/): The study highlights key financial tools in Romania, like green bonds and loans, which can help transition to a low-carbon economy, with banks playing a major role.
- [Centered‐Innovation MA for Bayesian Dirichlet ARMA: Theoretical Equivalence and an Application to Bank‐Asset Shares](https://www.ml-quant.com/papers/arxiv/2510.18903/): We remove bias in Dirichlet compositional time series by centering MA innovations using digamma adjustments, yielding unbiased MA terms, better forecasts, and cleaner MCMC diagnostics.
- [Optimal regulation and investment incentives in financial networks](https://www.ml-quant.com/papers/arxiv/2506.16648/): The research suggests financial regulation should be based on a firm's financial centrality and investment opportunities, and sometimes it's beneficial to limit one core bank's investments while allowing another to invest freely.
