TY - RPRT A1 - Bruche, Max A1 - Meisenzahl, Ralf R. A1 - Xu, David X. T1 - What Do Lead Banks Learn from Leveraged Loan Investors? T2 - Berlin School of Economics Discussion Papers N2 - We examine the private information held by nonbank lenders in leveraged loan syndications. In these transactions, lead banks gather information about participant demand through bookbuilding and use it to adjust loan spreads. An upward spread adjustment during bookbuilding strongly predicts the borrower’s future default and prompts banks to raise their internal risk estimates. This suggests that nonbank syndicate participants’ demand reveals information about borrower credit quality unknown to the lead bank before bookbuilding. Our results challenge the conventional view of information asymmetries between banks and nonbank lenders, instead highlighting an element of information complementarity in modern corporate lending. T3 - Berlin School of Economics Discussion Papers - 72 Y1 - 2025 UR - https://nbn-resolving.org/urn:nbn:de:kobv:b1570-opus4-59211 UR - https://berlinschoolofeconomics.de/insights/discussion-papers U6 - https://doi.org/10.48462/opus4-5921 ET - No. 72 ER -