The international syndicated loan market network: An “unholy trinity”?

Abstract

This paper provides a descriptive analysis of the international network of syndicated loan lenders through an examination of its topology and structure using network theory measures. The author studies both the undirected and directed graphs, weighted and unweighted connections, as well as different sub-networks based on lender type and geographical regions. Results show that the networks and sub-networks generally display an “unholy trinity” of structural properties that can be related to network robustness and stability. Specifically, lender networks have high complexity and connectivity, have a small-world structure characterized by proximity and clustering and also display scale-free characteristics with preferential attachment.