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Finance and Economics Discussion Series: Data for FEDS Paper 201227 ♣

Credit Line Use and Availability in the Financial Crisis: The Importance of Hedging

Jose M. Berrospide, Ralf R. Meisenzahl, and Briana D. Sullivan

Figure 1a: Revolving Portion of Credit Lines

Date Used Revolving Lines Total Revolving Lines
2006.25 10448.7 124323.55
2006.5 12663.3 128337.84
2006.75 11453 130939.03
2007 11116.7 134044.56
2007.25 12918.9 138846.45
2007.5 14422.3 144719.44
2007.75 20985.45 159478.73
2008 20847.5 159345.11
2008.25 19266.84 163467.4
2008.5 23101.22 162580.9
2008.75 23561.2 166172.64
2009 27288.1 164138.07
2009.25 28369.5 161704.71
2009.5 25661.7 161792.2
2009.75 21772.8 154737.39
2010 18290.4 153459.16
2010.25 19651.89 152669.95
2010.5 17844.8 152028.74
2010.75 16956.26 159085.08
2011 15542.2 162942.4
2011.25 17231.9 164190.65
Return to Figure 1

Figure 1b: Use of Revolving Credit Lines and TED Spread

Date Revolving Line Use TED Spread TED Spread Volatility
2006.25 10448.7 60.66666794 0.2566976
2006.5 12663.3 77.72966766 0.5489319
2006.75 11453 46.33333206 0.4049548
2007 11116.7 45.66666794 0.3565237
2007.25 12918.9 36.66666794 0.1845392
2007.5 14422.3 62.33333206 1.456345
2007.75 20985.45 92.54166412 27.65308
2008 20847.5 131.25 15.21392
2008.25 19266.84 62.47966766 8.598352
2008.5 23101.22 115.6463318 10.33577
2008.75 23561.2 255.9166718 38.92817
2009 27288.1 112.8333359 82.30025
2009.25 28369.5 97.85466766 1.08535
2009.5 25661.7 42.16666794 5.274271
2009.75 21772.8 13.02133369 0.5615259
2010 18290.4 19.39633369 0.0295922
2010.25 19651.89 18.48333359 0.1054624
2010.5 17844.8 38.72733307 1.464108
2010.75 16956.26 13.33333302 0.9558378
2011 15542.2 16.61433411 0.0111518
2011.25 17231.9 17.63333321 0.0712882
Return to Figure 1

Figure 2a: Credit Line Use by Firm Size

Date Use by Average Small Firm Use by Average Large Firm
2006.25 0.275519192 0.218409494
2006.5 0.289189696 0.248350024
2006.75 0.277966201 0.250418037
2007 0.292581856 0.262491524
2007.25 0.330515683 0.250700504
2007.5 0.322022438 0.268609196
2007.75 0.283290356 0.268722504
2008 0.284256011 0.287664831
2008.25 0.271784842 0.267735511
2008.5 0.292596519 0.298964441
2008.75 0.289730191 0.296530098
2009 0.310799658 0.307947189
2009.25 0.306555033 0.345004469
2009.5 0.305894345 0.318175316
2009.75 0.298288137 0.289626896
2010 0.324474216 0.266908437
2010.25 0.329406232 0.257733285
2010.5 0.302122295 0.246984124
2010.75 0.320025653 0.24243404
2011 0.294494152 0.233432427
2011.25 0.302646995 0.223273486
Return to Figure 2

Figure 2b: Credit Line Availability by Firm Size

Date Availability for Average Small Firms Availability for Average Large Firms
2006.25 0.923240304 0.908204734
2006.5 0.923204541 0.896971822
2006.75 0.890915096 0.888991773
2007 0.908803105 0.895123839
2007.25 0.914124608 0.902510464
2007.5 0.903587162 0.893408179
2007.75 0.871756852 0.894246101
2008 0.901627302 0.903375626
2008.25 0.895933449 0.896785796
2008.5 0.886841118 0.8895787
2008.75 0.906500876 0.886939645
2009 0.909177065 0.898527563
2009.25 0.90050894 0.921007395
2009.5 0.854961991 0.906922698
2009.75 0.835880935 0.896492243
2010 0.845379353 0.890788794
2010.25 0.857402742 0.904729545
2010.5 0.877960265 0.889756143
2010.75 0.887848437 0.885850489
2011 0.897311807 0.88513124
2011.25 0.883609951 0.894742191
Return to Figure 2

Figure 3a: Revolving Use: Commercial Paper Users Non-Users

Date Revolving Line Use by CP Users Revolving Line Use by Non-CP Users
2006.25 420 11239.4
2006.5 396 13011.9
2006.75 648.4 11655.9
2007 1138 13221.7
2007.25 614.3 13376.6
2007.5 511.4 14748.6
2007.75 992 15279.35
2008 1086.1 16536.8
2008.25 1662 16669.14
2008.5 2343.6 20480.92
2008.75 2123 20813.6
2009 2442.1 24063.4
2009.25 2199.8 25517.3
2009.5 2437 23233.7
2009.75 1969.1 20537.4
2010 1453.5 17855.3
2010.25 1573.2 18616.99
2010.5 992 17328.3
2010.75 1125 16486.16
2011 1227 15019.2
2011.25 1108 16849.6
Return to Figure 3

Figure 3b: Credit Line Availability: Commercial Paper Users Non-Users

Date Availability for Average CP User Availability for Average Non-CP User
2006.25 0.8249104 0.9247988
2006.5 0.7625453 0.9256738
2006.75 0.7596898 0.9177423
2007 0.8052652 0.9248024
2007.25 0.8336597 0.9175867
2007.5 0.7646278 0.9187365
2007.75 0.7618061 0.9192463
2008 0.7616102 0.9276543
2008.25 0.7847843 0.9176255
2008.5 0.7543951 0.9125267
2008.75 0.7495936 0.916035
2009 0.820988 0.9188069
2009.25 0.8953565 0.9116454
2009.5 0.9133515 0.8973296
2009.75 0.903026 0.8902878
2010 0.8940485 0.8972949
2010.25 0.9148564 0.8971233
2010.5 0.8480846 0.9037319
2010.75 0.8679997 0.9072893
2011 0.8583922 0.9087769
2011.25 0.8956011 0.9106923
Return to Figure 3

Figure 4a: Credit Line Use by Hedging Decision

date Use by Average Hedged Firm Use by Average Non-Hedged Firm
2006.25 0.521800637 0.248057842
2006.5 0.492348313 0.257705778
2006.75 0.501793146 0.254906595
2007 0.52868849 0.256986886
2007.25 0.524139047 0.255340546
2007.5 0.528988898 0.266851187
2007.75 0.547202468 0.257740378
2008 0.567471504 0.25017935
2008.25 0.572753787 0.238480553
2008.5 0.628509641 0.262800336
2008.75 0.631449282 0.240817443
2009 0.645074844 0.248430043
2009.25 0.629602134 0.273692191
2009.5 0.610392809 0.265364528
2009.75 0.60297513 0.251641363
2010 0.569932759 0.239584282
2010.25 0.560563684 0.241481885
2010.5 0.516334295 0.245988548
2010.75 0.477968603 0.246791229
2011 0.465496361 0.234067723
2011.25 0.417993128 0.249183863
Return to Figure 4

Figure 4b: Credit Line Availability by Hedging Decision

Date Availability for Average Hedged Firm Availability for Average Non-Hedged Firm
2006.25 0.974617422 0.912634492
2006.5 0.965263546 0.909456372
2006.75 0.95044446 0.900271177
2007 0.95887357 0.909645855
2007.25 0.95381403 0.904878199
2007.5 0.952290833 0.900851965
2007.75 0.95516187 0.899151325
2008 0.961437464 0.908002675
2008.25 0.950446486 0.900043786
2008.5 0.951580644 0.892742932
2008.75 0.952899873 0.894990265
2009 0.949052691 0.903080761
2009.25 0.940275252 0.901769817
2009.5 0.927180946 0.888156712
2009.75 0.924356163 0.879979193
2010 0.935586095 0.885538697
2010.25 0.922291577 0.892583847
2010.5 0.917815208 0.898562789
2010.75 0.913052499 0.901616812
2011 0.921998203 0.901967466
2011.25 0.918412924 0.905603111
Return to Figure 4

Figure 5: Number of Hedged Firms

Date TED Spread Number of Hedged Firms
2006.25 60.66666794 35
2006.5 77.72966766 48
2006.75 46.33333206 56
2007 45.66666794 60
2007.25 36.66666794 63
2007.5 62.33333206 67
2007.75 92.54166412 75
2008 131.25 80
2008.25 62.47966766 85
2008.5 115.6463318 89
2008.75 255.9166718 92
2009 112.8333359 97
2009.25 97.85466766 101
2009.5 42.16666794 102
2009.75 13.02133369 101
2010 19.39633369 97
2010.25 18.48333359 94
2010.5 38.72733307 82
2010.75 13.33333302 72
2011 16.61433411 68
2011.25 17.63333321 62
Return to Figure 5

Figure 6a: Use of Credit Lines Before and After Hedging

date Mean of Usage Before Hedging Mean of Usage After Hedging
Before Crisis 0.2832 0.5497
Crisis 0.2876 0.6429
Post-Crisis 0.2559 0.5085
Return to Figure 6

Figure 6b: Availability of Credit Lines Before and After Hedging

date Mean of Available Before Hedging Mean of Available After Hedging
Before Crisis 0.9109 0.9329
Crisis 0.9026 0.9378
Post-Crisis 0.8971 0.8971
Return to Figure 6
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Last update: June 28, 2012