Citi-IESE Credit and Debt Markets Project
A research project led by IESE's Center for International Finance
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In an era marked by swift and transformative changes in credit and debt markets, it is imperative for market participants to navigate emerging challenges and
opportunities effectively. The Citi-IESE Credit and Debt Markets Research Project (CREDET) is dedicated to advancing research in this space.
While inflation has moderated in several major economies, interest rates remain elevated as central banks maintain a cautious stance. At the same time, renewed geopolitical tensions and protectionist trade policies are clouding the global economic outlook. The prospect of widening government deficits in the U.S. and Europe is adding strain to sovereign bond markets, which have historically been viewed as low-risk safe havens. Despite these macroeconomic headwinds, private credit issuance and non-investment grade financing have continued to grow, potentially increasing market complexity and vulnerability.
These dynamics present a rich tapestry of opportunities and challenges for both firms and investors. Through the Citi-IESE CREDET initiative, our goal is to
explore evolving trends in credit and debt markets, enhancing understanding and highlighting associated risks and opportunities. The project is part of IESE’s Center for International Finance (CIF), which promotes a multidisciplinary approach to generating and disseminating financial knowledge and advancing best practices across institutions and capital markets. To this end, it drives cutting-edge research, hosts academic events and conferences, and develops communication platforms to share findings with a broader audience.
The project is grateful for the support of:
FRITS PRAKKE
Founding Partner, Alchemy Special Oppportunities
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REGISTERResearch Topics.
IESE’s Credit and Debt Markets Research Project will carry out research in six main areas:
Credit and Debt Markets Research Project.
Credit and Debt Markets Research Project.

Christian Eufinger
Director of Credit and Debt Markets Research Project & Associate Professor

Yuki Sakasai
Senior Research Associate
Advisory Committee.
Advisory Committee.

Franz Heukamp
Dean, IESE

Frits Prakke
Founding Partner, Alchemy Special Opportunities
Publications.
- Annual Report 22-23: Credit and Debt Markets Research Project
- Annual Report 2025: Credit and Debt Markets Research Project 2025
Published work
- Zombie Credit and (Dis-)Inflation: Evidence from Europe. Acharya, V. V., Crosignani, M., Eisert, T., Eufinger, C. (2023). Journal of Finance, 79 (3), 1883-1929. https://doi.org/10.1111/jofi.13342
- Earnings Management to Avoid Debt Covenant Violations and Future Performance. Dyreng, S., Hillegeist, S.A., Peñalva, F. (2022). European Accounting Review, 31 (2), 311-343. doi:10.1080/09638180.2020.1826337.
Working papers
- Debt Renegotiation and the Properties of Accounting Information: Evidence from a Bankruptcy Reform. Bonetti, P.
- AI Adoption and Firm Performance: Management versus IT. Alekseeva, L., Giné, M., Samila, S., Taska, B.
- Financial Asset Aggregation and Information Loss. Curtis, A., Loh, W. T., Raney, A. R.
- Financial Shocks and Credit Dislocation: The Role of Integrated Manufacturer-Lenders. Benetton, M., Mayordomo, S., Paravisini, D.
- (N)evergreening Loans: From Incurred to Expected Credit Loss Model. Eufinger, C., Ramirez-Chiang, G., Sakasai, Y.
Published work
- Evidence from the adoption of IFRS 9 and the impact of COVID-19 on lending and regulatory capital on Spanish Banks. López-Espinosa, G., Peñalva, F., (2023). The Journal of Accounting and Public Policy, 42 (4), 107097. https://doi.org/10.1016/j.jaccpubpol.2023.107097
- Access to credit and firm survival during a crisis: the case of zero-bank-debt firms. Blanco, R., García-Posada, M., Mayordomo, S., Rodríguez-Moreno, M., (2024). Journal of Financial Intermediation, 59, 101102. https://doi.org/10.1016/j.jfi.2024.101102
Working papers
- Banks vs. Firms: Who Benefits from Credit Guarantees? Martin, A., Mayordomo, S., Vanasco, V.
- Bonding With Risk: Corporate Investment and Savings in Risky Financial Assets. Huang, T., Sacchetto, S.
- The Monetary Entanglement between CBDC and Central Bank Policies. Fraschini, M., Somoza, L., Terracciano, T.
- Concentrating on Bailouts: Government Guarantees and Bank Asset Composition. Eufinger, C., Gorostiaga, J.P., Richter, B.
- Breaking Bagehot’s Rules: Loan Contracting with Advantageous Central Bank Funding. Eufinger, C., Ye, Z.
- How Do Supply Shocks to Inflation Generalize? Evidence From the Pandemic Era in Europe. Acharya, V.V., Crosignani, M., and Eisert, T., Eufinger, C.
- How do changes in financial reporting standards affect relationship lending? Dejuan-Bitria,D., Mayordomo, S., Roibás, I.
- Household Heterogeneity and the Lending Channel of Monetary Policy. Agarwal, S., Mayordomo, S., Rodríguez-Moreno, M., Tarantino, E.
- Provisioning based on Expected Credit Losses and Risk-taking Discipline. Ormazabal, G., Peñalva, F. (work in progress)
- CBDC and Banks: Threats or Opportunity? Fraschini, M., Somoza, L., Terracciano, T. (work in progress)
Published work
- Green Banking Illusion? The Influence of “Eco-Conscious” Bank Shareholders on Credit Allocation. Böhm, A., Eufinger, C., Kadach, I., Sakasai, Y. (2025). Journal of Corporate Finance: 102767.
https://doi.org/10.1016/j.jcorpfin.2025.102767 - Environmental disclosure and the cost of capital. Evidence from the Fukushima nuclear disaster. Bonetti, P. Cho, C., Michelon, G. (2024), European Accounting Review, 33(5), 1693-1721. https://doi.org/10.1080/09638180.2023.2203410
- Executive Compensation Tied to ESG Performance: International Evidence. Cohen, S., Kadach, I., Ormazabal, G., Reichelstein, S. (2023). Journal of Accounting Research, 61 (3), 805-853. doi:10.1111/1475-679X.12481.
- Institutional Investors, Climate Disclosure, and Carbon Emissions. Cohen, S. Kadach, I., Ormazabal, G. (2023). Journal of Accounting and Economics, 76(2-3), 101640. https://doi.org/10.1016/j.jacceco.2023.101640
- Climate Finance. Fernandes, N. (2023). NPV Publishing.
Working papers
- Climate Risk, Soft Information, and Credit Supply. Álvarez, L., Mayordomo, S., Vergara-Alert, C., Vives, X.
- Mortgage Markets with Climate-Change Risk: Evidence from Wildfires in California. Issler, P., Stanton, R., Vergara-Alert, C., Wallace, N.
- Imposing Disclosure on Investors that Choose to Promote Sustainability: Does it Lead to Portfolio Decarbonization? Dai, J., Ormazabal, G., Penalva, F., Raney, A. R.
- Cross-border Carbon Taxes and Shareholder Wealth. Alonso, M., Jacob, M., Ormazabal, G., Raney, A. R.
- Are Green Funds for Real? Jaunin, C., Somoza, L., Terracciano, T.
- The (Hidden) Costs of Destroying Nature: Wetland Loss and Municipal Bond Yields. Rizzi, C.
- Climate disclosures and decarbonization along the supply chain. Bonetti, P., Kadach, I., Ormazabal, G.
- Government-Funded Green Banks: Catalysts for the Green Transition. Rizzi, C., Xu, S., Yoo, P.
- Social Capital and External Financing Costs. Ippolito, F., Sacchetto, S., Zhou, F. (work in progress)
- Monetary Policy and Green M&A. Bonetti, P., Ormazabal, G., Raney, A. R., Sakasai, Y. (work in progress)