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Hedge Fund Leverage
Ang, Andrew; Gorovyy, Sergiy; Inwegen, Gregory B. van - National Bureau of Economic Research (NBER) - 2011
We investigate the leverage of hedge funds in the time series and cross section. Hedge fund leverage is counter-cyclical to the leverage of listed financial intermediaries and decreases prior to the start of the financial crisis in mid-2007. Hedge fund leverage is lowest in early 2009 when the...
Persistent link: https://www.econbiz.de/10008839465
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Household Debt: Facts, Puzzles, Theories, and Policies
Zinman, Jonathan - National Bureau of Economic Research (NBER) - 2014
Borrowing decisions affect most households, with large stakes and implications for subfields as varied as macroeconomics and industrial organization. I review theoretical and empirical work on household debt: its prevalence, level, growth, and composition, as well as various measures of consumer...
Persistent link: https://www.econbiz.de/10010951247
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Predatory Short Selling
Brunnermeier, Markus K.; Oehmke, Martin - National Bureau of Economic Research (NBER) - 2013
Financial institutions may be vulnerable to predatory short selling. When the stock of a financial institution is shorted aggressively, leverage constraints imposed by short-term creditors can force the institution to liquidate long-term investments at fire sale prices. For financial...
Persistent link: https://www.econbiz.de/10010699609
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Collateral Valuation and Borrower Financial Constraints: Evidence from the Residential Real Estate Market
Agarwal, Sumit; Ben-David, Itzhak; Yao, Vincent - National Bureau of Economic Research (NBER) - 2013
Financially constrained borrowers have the incentive to influence the appraisal process in order to increase borrowing or reduce the interest rate. We document that the average valuation bias for residential refinance transactions is above 5%. The bias is larger for highly leveraged...
Persistent link: https://www.econbiz.de/10010703331
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The Macroeconomics of Shadow Banking
Moreira, Alan; Savov, Alexi - National Bureau of Economic Research (NBER) - 2014
We build a macroeconomic model that centers on liquidity transformation in the financial sector. Intermediaries maximize liquidity creation by issuing securities that are money-like in normal times but become illiquid in a crash when collateral is scarce. We call this process shadow banking. A...
Persistent link: https://www.econbiz.de/10010821757
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The Role of Dynamic Renegotiation and Asymmetric Information in Financial Contracting
Roberts, Michael R. - National Bureau of Economic Research (NBER) - 2014
Using data from SEC filings, I show that the typical bank loan is renegotiated five times, or every nine months. The pricing, maturity, amount, and covenants are all significantly modified during each renegotiation, whose timing is governed by the financial health of the contracting parties and...
Persistent link: https://www.econbiz.de/10010951241
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Syndicated Loan Spreads and the Composition of the Syndicate
Lim, Jongha; Minton, Bernadette A.; Weisbach, Michael - National Bureau of Economic Research (NBER) - 2012
otherwise identical bank-only facilities. Contrary to risk-based explanations of this finding, non-bank facilities are priced …
Persistent link: https://www.econbiz.de/10010785631
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Why High Leverage is Optimal for Banks
DeAngelo, Harry; Stulz, René M. - National Bureau of Economic Research (NBER) - 2013
leverage increased over the last 150 years or so, (ii) why high bank leverage per se does not necessarily cause systemic risk …
Persistent link: https://www.econbiz.de/10010951419
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Leverage and Beliefs: Personal Experience and Risk Taking in Margin Lending
Voth, Hans-Joachim; Koudijs, Peter - National Bureau of Economic Research (NBER) - 2014
What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on … collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor … money. Nonetheless, only those at risk of losing money changed their behavior markedly - they lent with much higher haircuts …
Persistent link: https://www.econbiz.de/10010951446
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Implicit Guarantees and Risk Taking: Evidence from Money Market Funds
Kacperczyk, Marcin; Schnabl, Philipp - National Bureau of Economic Research (NBER) - 2011
bankruptcy and to curb the firm's risk taking outside bankruptcy. We analyze the role of such implicit guarantees in the context … expansion in risk-taking opportunities of money market funds during the period of August 2007 to August 2008. We find that a … financial institutions with higher equity take on less risk than those sponsored by financial institutions with lower equity …
Persistent link: https://www.econbiz.de/10009251486