---
title: The Undrawn Credit Line Premium
url: https://www.ml-quant.com/papers/ssrn/4583504/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4583504
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4583504
featured: 2023-09-28
citations: 0
topic: Risk, Credit & Banking
---


# The Undrawn Credit Line Premium

According to the research, firms with more unused credit lines have higher returns due to greater liquidity needs, but are also more vulnerable to economic shocks.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4583504
- Identifier: SSRN 4583504
- Released: 2023-09-25
- First featured: Quant Letter No. 17 (2023-09-28): https://www.ml-quant.com/issues/2023-09-28/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Risk, Credit & Banking

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