Finance and Economics Discussion Series: 2008-36 Screen Reader version ♣
Insider Rates vs. Outsider Rates in Lending
Lamont K. Black*
Board of Governors of the Federal Reserve System
July 2008
| p | 0.5000, 0.5051, 0.5102, 0.5153, 0.5204, 0.5255, 0.5306, 0.5357, 0.5408, 0.5459, 0.5510, 0.5561, 0.5612, 0.5663, 0.5714, 0.5765, 0.5816, 0.5867, 0.5918, 0.5969, 0.6020, 0.6071, 0.6122, 0.6173, 0.6224, 0.6276, 0.6327, 0.6378, 0.6429, 0.6480, 0.6531, 0.6582, 0.6633, 0.6684, 0.6735, 0.6786, 0.6837, 0.6888, 0.6939, 0.6990, 0.7041, 0.7092, 0.7143, 0.7194, 0.7245, 0.7296, 0.7347, 0.7398, 0.7449, 0.7500 |
| p(S) | 0.5000, 0.5052, 0.5104, 0.5158, 0.5212, 0.5267, 0.5324, 0.5381, 0.5439, 0.5498, 0.5557, 0.5618, 0.5679, 0.5741, 0.5804, 0.5867, 0.5931, 0.5996, 0.6061, 0.6127, 0.6193, 0.6261, 0.6328, 0.6397, 0.6465, 0.6535, 0.6605, 0.6675, 0.6746, 0.6817, 0.6889, 0.6962, 0.7035, 0.7108, 0.7182, 0.7256, 0.7330, 0.7405, 0.7480, 0.7556, 0.7632, 0.7709, 0.7786, 0.7863, 0.7941, 0.8018, 0.8097, 0.8175, 0.8254, 0.8333 |
| rH | 1.0000, 0.9800, 0.9608, 0.9424, 0.9248, 0.9079, 0.8917, 0.8763, 0.8615, 0.8475, 0.8341, 0.8214, 0.8094, 0.7980, 0.7872, 0.7771, 0.7677, 0.7589, 0.7508, 0.7433, 0.7365, 0.7303, 0.7249, 0.7201, 0.7160, 0.7127, 0.7101, 0.7083, 0.7073, 0.7071, 0.7078, 0.7095, 0.7120, 0.7156, 0.7202, 0.7260, 0.7330, 0.7413, 0.7510, 0.7623, 0.7751, 0.7898, 0.8065, 0.8253, 0.8465, 0.8704, 0.8972, 0.9275, 0.9616, 1.0000 |
| rM | 1.0000, 0.9799, 0.9603, 0.9413, 0.9228, 0.9048, 0.8873, 0.8703, 0.8537, 0.8376, 0.8219, 0.8067, 0.7918, 0.7774, 0.7634, 0.7497, 0.7364, 0.7235, 0.7110, 0.6988, 0.6870, 0.6755, 0.6643, 0.6535, 0.6430, 0.6328, 0.6229, 0.6134, 0.6042, 0.5953, 0.5867, 0.5784, 0.5704, 0.5627, 0.5554, 0.5483, 0.5416, 0.5352, 0.5291, 0.5234, 0.5180, 0.5129, 0.5082, 0.5039, 0.5000, 0.4964, 0.4933, 0.4906, 0.4884, 0.4867 |
| rL | 1.0000, 0.9798, 0.9602, 0.9410, 0.9223, 0.9040, 0.8862, 0.8688, 0.8517, 0.8351, 0.8189, 0.8030, 0.7875, 0.7724, 0.7576, 0.7431, 0.7290, 0.7152, 0.7016, 0.6884, 0.6755, 0.6629, 0.6505, 0.6384, 0.6266, 0.6150, 0.6037, 0.5927, 0.5818, 0.5713, 0.5609, 0.5508, 0.5410, 0.5313, 0.5219, 0.5127, 0.5037, 0.4949, 0.4863, 0.4779, 0.4697, 0.4618, 0.4540, 0.4465, 0.4391, 0.4319, 0.4250, 0.4182, 0.4117, 0.4053 |
| lambda | 1.0000, 1.0419, 1.0860, 1.1324, 1.1812, 1.2327, 1.2870, 1.3442, 1.4045, 1.4681, 1.5353, 1.6062, 1.6811, 1.7602, 1.8440, 1.9326, 2.0263, 2.1257, 2.2310, 2.3427, 2.4613, 2.5873, 2.7213, 2.8638, 3.0156, 3.1774, 3.3501, 3.5345, 3.7317, 3.9428, 4.1690, 4.4117, 4.6724, 4.9530, 5.2552, 5.5814, 5.9340, 6.3157, 6.7298, 7.1798, 7.6700, 8.2050, 8.7903, 9.4324, 10.1387, 10.9178, 11.7801, 12.7376, 13.8051, 15.0000 |
| kappa | NaN, 3.8785, 3.8950, 3.9121, 3.9299, 3.9483, 3.9673, 3.9870, 4.0074, 4.0286, 4.0505, 4.0731, 4.0966, 4.1210, 4.1462, 4.1723, 4.1994, 4.2275, 4.2566, 4.2868, 4.3182, 4.3507, 4.3846, 4.4197, 4.4563, 4.4944, 4.5341, 4.5754, 4.6185, 4.6635, 4.7105, 4.7597, 4.8111, 4.8650, 4.9216, 4.9810, 5.0435, 5.1093, 5.1787, 5.2521, 5.3297, 5.4119, 5.4993, 5.5924, 5.6916, 5.7978, 5.9117, 6.0342, 6.1665, 6.3097 |
| p | 0.4050, 0.4130, 0.4209, 0.4289, 0.4368, 0.4448, 0.4528, 0.4607, 0.4687, 0.4766, 0.4846, 0.4926, 0.5005, 0.5085, 0.5164, 0.5244, 0.5323, 0.5403, 0.5483, 0.5562, 0.5642, 0.5721, 0.5801, 0.5881, 0.5960, 0.6040, 0.6119, 0.6199, 0.6279, 0.6358, 0.6438, 0.6517, 0.6597, 0.6677, 0.6756, 0.6836, 0.6915, 0.6995, 0.7074, 0.7154, 0.7234, 0.7313, 0.7393, 0.7472, 0.7552, 0.7632, 0.7711, 0.7791, 0.7870, 0.7950 |
| p(S) | 0.7902, 0.7757, 0.7623, 0.7500, 0.7388, 0.7285, 0.7191, 0.7106, 0.7029, 0.6960, 0.6899, 0.6845, 0.6797, 0.6756, 0.6721, 0.6692, 0.6669, 0.6651, 0.6638, 0.6631, 0.6627, 0.6629, 0.6635, 0.6644, 0.6658, 0.6676, 0.6697, 0.6722, 0.6751, 0.6782, 0.6817, 0.6855, 0.6895, 0.6939, 0.6985, 0.7034, 0.7085, 0.7139, 0.7196, 0.7254, 0.7315, 0.7378, 0.7443, 0.7510, 0.7579, 0.7649, 0.7722, 0.7796, 0.7873, 0.7950 |
| rH | 6.0041, 5.3379, 4.7883, 4.3272, 3.9347, 3.5967, 3.3026, 3.0444, 2.8159, 2.6122, 2.4296, 2.2650, 2.1159, 1.9801, 1.8560, 1.7422, 1.6374, 1.5407, 1.4511, 1.3679, 1.2905, 1.2183, 1.1508, 1.0876, 1.0283, 0.9726, 0.9201, 0.8707, 0.8241, 0.7800, 0.7383, 0.6989, 0.6616, 0.6261, 0.5926, 0.5607, 0.5305, 0.5018, 0.4746, 0.4487, 0.4242, 0.4010, 0.3790, 0.3583, 0.3387, 0.3202, 0.3030, 0.2868, 0.2719, 0.2581 |
| rM | 2.6444, 2.4713, 2.3172, 2.1787, 2.0535, 1.9395, 1.8351, 1.7391, 1.6504, 1.5681, 1.4917, 1.4203, 1.3535, 1.2909, 1.2321, 1.1766, 1.1243, 1.0748, 1.0279, 0.9834, 0.9412, 0.9010, 0.8628, 0.8263, 0.7915, 0.7582, 0.7264, 0.6960, 0.6668, 0.6388, 0.6120, 0.5863, 0.5615, 0.5378, 0.5149, 0.4929, 0.4718, 0.4514, 0.4318, 0.4129, 0.3947, 0.3771, 0.3602, 0.3439, 0.3282, 0.3131, 0.2985, 0.2844, 0.2709, 0.2579 |
| rL | 2.0489, 1.9469, 1.8527, 1.7654, 1.6842, 1.6083, 1.5373, 1.4707, 1.4079, 1.3487, 1.2928, 1.2398, 1.1896, 1.1419, 1.0965, 1.0533, 1.0120, 0.9726, 0.9350, 0.8989, 0.8644, 0.8313, 0.7995, 0.7689, 0.7396, 0.7114, 0.6842, 0.6580, 0.6328, 0.6084, 0.5849, 0.5622, 0.5403, 0.5191, 0.4987, 0.4788, 0.4597, 0.4411, 0.4231, 0.4057, 0.3888, 0.3724, 0.3565, 0.3411, 0.3262, 0.3117, 0.2976, 0.2840, 0.2707, 0.2579 |
| lambda | 2.5644, 2.4329, 2.3313, 2.2531, 2.1935, 2.1492, 2.1177, 2.0974, 2.0869, 2.0852, 2.0916, 2.1055, 2.1266, 2.1546, 2.1894, 2.2309, 2.2792, 2.3345, 2.3969, 2.4666, 2.5440, 2.6295, 2.7235, 2.8267, 2.9397, 3.0631, 3.1978, 3.3447, 3.5049, 3.6797, 3.8703, 4.0783, 4.3054, 4.5537, 4.8255, 5.1232, 5.4500, 5.8091, 6.2046, 6.6410, 7.1235, 7.6584, 8.2528, 8.9152, 9.6557 10.4863 11.4210 12.4773 13.6759 15.0422 |
| kappa | 5.6422, 5.4662, 5.3201, 5.1975, 5.0936, 5.0049, 4.9289, 4.8635, 4.8071, 4.7586, 4.7168, 4.6810, 4.6505, 4.6248, 4.6033, 4.5858, 4.5719, 4.5612, 4.5537, 4.5491, 4.5473, 4.5481, 4.5514, 4.5572, 4.5654, 4.5759, 4.5887, 4.6039, 4.6213, 4.6410, 4.6631, 4.6876, 4.7145, 4.7439, 4.7760, 4.8107, 4.8483, 4.8889, 4.9327, 4.9798, 5.0304, 5.0849, 5.1435, 5.2066, 5.2745, 5.3476, 5.4266, 5.5119, 5.6043, 5.7047 |