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What are the macroeconomic consequences of changing aggregate lending standards in residential mortgage markets, as measured by loan-to-value (LTV) ratios? In a structural VAR, GDP and business investment increase following an expansionary LTV shock. Residential investment, by contrast, falls, a...
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We show that a policy rate cut lengthens corporate debt maturity. A 1 standard deviation (10 basis points, b …
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Do firms lengthen the maturity of their borrowing following a flattening of the Treasury yield curve that results from … policy over the two regimes. We find that the answer is robustly yes for the pre-ZLB period: Firms extended the maturity of … their bond issuance by nearly three years in response to a policy-induced reduction of 1 percentage point in the maturity …
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reason. -- Liquidity ; Asymmetric Information ; Debt maturity …
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This paper studies how insider trading intensity is affected by the joint effects of competition and regulation. Prior theoretical research has found that, in the absence of regulation, more insiders leads to more insider trading. We show that optimal regulation, however, features detection...
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