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Hintermaier, Thomas; Koeniger, Winfried - C.E.P.R. Discussion Papers - 2011

the U.S. We then establish the quantitative result that home equity does not serve as informal collateral for unsecured …

Persistent link: https://www.econbiz.de/10009001063

Sovereign Default Risk and Bank Fragility in Financially Integrated Economies

Bolton, Patrick; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2011

government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …

Persistent link: https://www.econbiz.de/10009003147

Adverse Selection, Credit, and Efficiency: the Case of the Missing Market

Martin, Alberto - C.E.P.R. Discussion Papers - 2011

We analyze a standard environment of adverse selection in credit markets. In our environment, entrepreneurs who are privately informed about the quality of their projects need to borrow in order to invest. Conventional wisdom says that, in this class of economies, the competitive equilibrium is...

Persistent link: https://www.econbiz.de/10008854521

Financial Distress and Bank Restructuring of Small to Medium Size UK Companies

Franks, Julian R; Sussman, Oren - C.E.P.R. Discussion Papers - 2003

We use a unique data set to analyse how UK banks deal with small to medium size distressed firms both inside and outside bankruptcy. The approach to bankruptcy is contract-based, with lenders and borrowers relying on procedures written into the debt contract, and where the courts are largely...

Persistent link: https://www.econbiz.de/10005788979

Lessons from the 2007 Financial Crisis

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007

The paper studies the causes of the current financial crisis and considers proposals for mitigation and prevention of future crises. The crisis is was the product of a ‘perfect storm’ bringing together a number of microeconomic and macroeconomic pathologies. Among the microeconomic systemic...

Persistent link: https://www.econbiz.de/10005791213

Banking (Conservatively) With Optimists

Manove, Michael; Padilla, Atilano Jorge - C.E.P.R. Discussion Papers - 1998

collateral requirements by banks may lead to a further decrease in the level of economic efficiency attained. We discuss bank …

Persistent link: https://www.econbiz.de/10005791403

A Lender-Based Theory of Collateral

Inderst, Roman; Mueller, Holger M - C.E.P.R. Discussion Papers - 2006

rejects marginally profitable projects. Collateral mitigates this inefficiency by 'flattening' the local lender’s payoff …-à-vis transaction lenders lead to higher collateral requirements, thus strengthening the role of collateral in local lending …

Persistent link: https://www.econbiz.de/10005123922

Collateral, Default Risk, and Relationship Lending: An Empirical Study on Financial Contracting

Krahnen, Jan Pieter - C.E.P.R. Discussion Papers - 2000

This paper provides new insights into the nature of relationship lending by analysing the role of collateral and its … indicate that the use of collateral in loan contracts is mainly driven by aspects of relationship lending and renegotiation … risk. Relationship lenders do require more collateral from their debtors than normal lenders for two main reasons. First …

Persistent link: https://www.econbiz.de/10005123985

Creditor Protection and Stock Price Volatility

Hale, Galina B; Razin, Assaf; Tong, Hui - C.E.P.R. Discussion Papers - 2007

This paper analyzes the effect of creditor protection on the volatility of stock market returns. Our application of the Tobin’s q model predicts that credit protection reduces the probability of oscillations between binding and nonbinding states of the credit constraint, which result from...

Persistent link: https://www.econbiz.de/10005504268

Bidding and Performance in Repo Auctions: Evidence from ECB Open Market Operations

Bindseil, Ulrich; Nyborg, Kjell G; Strebulaev, Ilya - C.E.P.R. Discussion Papers - 2004

bidders are more concerned with the loser’s nightmare, collateral, and future interest rate reductions by the ECB. Small and …

Persistent link: https://www.econbiz.de/10005067452