households with children are under-insured against the risk that an adult member of the household dies. We develop a tractable … with the life insurance data, in equilibrium young households are borrowing constrained and under-insured against human … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life-insurance …

Covered bonds and mortgage-backed securities both allow mortgages to be financed with duration-matched bonds. Given the … problems in the MBS market during the financial crisis, some suggest that covered bonds might be a substitute for MBS. We … examine the use of covered bonds and MBS in the U.S. and Europe, finding that the two are used for different purposes. Covered …