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Jurek, Jakub W. - 2011

-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller's (1958 …

Persistent link: https://www.econbiz.de/10013120294

Collateral Pricing

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …

Persistent link: https://www.econbiz.de/10012772363

Repossession and the Democratization of Credit

Assunção, Juliano J. - 2014

We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto … of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and …

Persistent link: https://www.econbiz.de/10013066574

Collateral, Rationing and Government Intervention in Credit Markets

Gale, William G. - 2010

This paper analyzes the effects of government intervention in credit markets when lenders use collateral, interest, and …

Persistent link: https://www.econbiz.de/10012763105

Collateral, Rationing, and Government Intervention in Credit Markets

Gale, William G. - 2008

This paper analyzes the effects of government intervention in credit markets when lenders use collateral, interest, and …

Persistent link: https://www.econbiz.de/10012774530

The Alchemy of Cdo Credit Ratings

Benmelech, Efraim - 2010

Collateralized Loan Obligations (CLOs) were one of the largest and fastest growing segments of the structured finance market, fueling the 2003-2007 boom in syndicated loans and leveraged buyouts. The credit crisis brought CLO issuance to a halt, and as a result the leveraged loan market dried...

Persistent link: https://www.econbiz.de/10012757547

Valuing Toxic Assets : An Analysis of Cdo Equity

Longstaff, Francis A. - 2010

How does the market value complex structured-credit securities? This issue is central to understanding the current financial crisis and identifying effective policy measures. We study this issue from a novel perspective by contrasting the valuation of CDO equity with that of bank stocks. This is...

Persistent link: https://www.econbiz.de/10012757580

The Distribution of Crisis Credit : Effects on Firm Indebtedness and Aggregate Risk

Huneeus, Federico; Kaboski, Joseph Paul; Larraín, Mauricio - 2022

We study the distribution of credit during crisis times and its impact on firm indebtedness and macroeconomic risk. Whereas policies can help firms in need of financing, they can lead to adverse selection from riskier firms and higher default risk. We analyze a large-scale program of public...

Persistent link: https://www.econbiz.de/10013299321

Collateral Damage : The Impact of Shale Gas on Mortgage Lending

Chen, Yanyou; Roberts, James W.; Timmins, Christopher; … - 2023

We analyze mortgage lenders’ behavior with respect to shale gas risk during the period of the U.S. shale gas boom, which coincided with fluctuations in the U.S. housing market and increased scrutiny in the lending industry. Shale gas operations have the potential to place affected houses into...

Persistent link: https://www.econbiz.de/10014351703

Good Booms, Bad Booms

Gorton, Gary - 2016

careful examination of collateral. As this examination is more valuable when collateral backs projects with low productivity …

Persistent link: https://www.econbiz.de/10012998412