This is a summary and video by Amir Sufi about his study with coauthors Greg Nini and David C. Smith who find that syndicates of banks exert significant and beneficial influence on firms’ investments through restrictions in private credit agreements.The role of stockholders in influencing corporate investment policy through voting rights and the board of directors has been widely studied. And, while scholars and practitioners alike are well aware of the ability of bondholders to affect investment policy to some extent through bond covenants, this ability has traditionally been thought to be quite limited.