Title: Exploring risk hidden in syndicated loan networks: Evidence from real estate investment trusts
Authors: Masayasu Kanno - Nihon University (Japan) [presenting]
Abstract: The aim is to assess interconnectedness and risk in the market for syndicated loans to Japan's real estate investment trusts (J-REITs) during the fiscal year 2013the first half of the fiscal year 2021. Network analysis indicates that Japanese major banks, large regional banks, and J-REITs play a central role in the network regarding degree centrality. Subsequently, the stress test investigates the resilience of a shock-propagation for a syndicated loan market. We found that no default contagion via a syndicated loan market is expected on the basis of syndicated loans outstanding at the end of 2021. Finally, we contribute to the literature regarding interconnectedness, credit risk, and systemic risk in the J-REIT syndicated loan network.