{"title":"Cross-Selling Lending and Underwriting: Scope Economies and Incentives","authors":"C. Laux, U. Walz","doi":"10.2139/ssrn.965247","DOIUrl":"https://doi.org/10.2139/ssrn.965247","url":null,"abstract":"We highlight the implications of combining underwriting services and lending for the choice of underwriters and for competition in the underwriting business. We show that cross-selling can increase underwriters' incentives, and we explain three phenomena: first, that cross-selling is important for universal banks to enter the investment banking business; second, that cross-selling is particularly attractive for highly leveraged borrowers; third, that less-than-market rates are no prerequisite for cross-selling to benefit a bank's clients. In our model, cross-selling reduces rents in the underwriting business.","PeriodicalId":183899,"journal":{"name":"Reputational Issues","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128224424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}