Conventional wisdom holds that an incumbent bank would never voluntarily share proprietary borrower data with a competing lender. We study lending competition in which the incumbent owns data that generate informative signals about borrower quality and chooses how much to make portable to an entrant. When the data identify high-quality borrowers, sharing softens the entrant’s bidding after unfavorable signals more than it sharpens competition after...

Trading relationships in over-the-counter (OTC) markets are persistent and often exclusive, despite technological advances that have expanded clients' access to dealers. We rationalize this pattern in a model where trading relationships allow dealers to learn their clients' trading motives from their trading records. Relationship dealers set record-contingent quotes, generating price discrimination that mitigates adverse selection for liquidity-driven clients. Moreover, we show that clients prefer exclusive...