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An Empirical Analysis of Personal Bankruptcy and Delinquency

Gross, David B. - 2001

This paper uses a new panel data set of credit card accounts to analyze credit card delinquency, personal bankruptcy …

Persistent link: https://www.econbiz.de/10012470309

Personal Bankruptcy and Credit Supply and Demand

Gropp, Reint - 1996

This paper examines how personal bankruptcy and bankruptcy exemptions affect the supply and demand for credit. While … generous state-level bankruptcy exemptions are probably viewed by most policymakers as benefitting less-well-off borrowers, our … states. Thus, bankruptcy exemptions redistribute credit toward borrowers with high assets …

Persistent link: https://www.econbiz.de/10012473189

LDC's Foreign Borrowing and Default Risk : An Empirical Investigation

Edwards, Sebastian - 1983

This paper investigates to what extent the international financial community has taken into account the risk characteristics of borrowing less developed countries when granting loans. Specifically, this study analyzes the determinants of the spread between the interest rate charged to a...

Persistent link: https://www.econbiz.de/10012477928

Designed to Fail : Effects of the Default Option and Information Complexity on Student Loan Repayment

Cox, James C. - 2018

We ask why so few student loan borrowers enroll in Income Driven Repayment when the majority would benefit from doing so. To do so we run an incentivized laboratory experiment using a facsimile of the government's Student Loan Exit Counseling website. We test the role information complexity,...

Persistent link: https://www.econbiz.de/10012480909

The Effect of Principal Reduction on Household Distress : Evidence from Mortgage Cramdown

Cespedes, Jacelly C.; Parra, Carlos R.; Sialm, Clemens - National Bureau of Economic Research - 2021

Mortgage cramdown enabled bankruptcy judges to discharge the underwater portion of a mortgage during Chapter 13 … bankruptcy before the Supreme Court disallowed this practice in 1993. We exploit the random assignment of cases to judges to … quantify the ex-post effects of Chapter 13 bankruptcy over the period from 1989 to 1993. We find that a successful Chapter 13 …

Persistent link: https://www.econbiz.de/10012585384

A Model of Mortgage Default

Campbell, John Y. - 2011

This paper solves a dynamic model of a household's decision to default on its mortgage, taking into account labor income, house price, inflation, and interest rate risk. Mortgage default is triggered by negative home equity, which results from declining house prices in a low inflation...

Persistent link: https://www.econbiz.de/10012461141

Cash Holdings and Credit Risk

Acharya, Viral V. - 2011

Intuition suggests that firms with higher cash holdings are safer and should have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive and higher for lower credit ratings. This puzzling finding can be explained by the precautionary motive for...

Persistent link: https://www.econbiz.de/10012461663

Is Credit Event Risk Priced? Modeling Contagion via the Updating of Beliefs

Collin-Dufresne, Pierre - 2010

Empirical tests of reduced form models of default attribute a large fraction of observed credit spreads to compensation for jump-to-default risk. However, these models preclude a "contagion-risk'' channel, where the aggregate corporate bond index reacts adversely to a credit event. In this...

Persistent link: https://www.econbiz.de/10012462918

Rollover Risk and Market Freezes

Acharya, Viral V. - 2010

The crisis of 2007-09 has been characterized by a sudden freeze in the market for short-term, secured borrowing. We present a model that can explain a sudden collapse in the amount that can be borrowed against finitely-lived assets with little credit risk. The borrowing in this model takes the...

Persistent link: https://www.econbiz.de/10012462978

Rollover Risk and Credit Risk

He, Zhiguo - 2010

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher …

Persistent link: https://www.econbiz.de/10012462997