---
title: Nonbank Lending to Distressed Firms
url: https://www.ml-quant.com/papers/ssrn/7626438/
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 7626438
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7626438
featured: 2026-10-23
citations: unknown
topic: Risk, Credit & Banking
---


# Nonbank Lending to Distressed Firms

As firms approach bankruptcy, lending shifts to nonbanks and fintechs despite higher losses given default, revealing worse information and more pro-cyclical credit supply during downturns.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7626438
- Identifier: SSRN 7626438
- Released: 2026-10-19
- 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: Manasa Gopal, Quinn Maingi, Gunjan Seth

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