Narrow search
Showing 1 - 10 of 754
Cover Image
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
Cover Image
The Uneasy Case for the Priority of Secured Claims in Bankruptcy : Further Thoughts and a Reply to Critics
Bebchuk, Lucian A.; Fried, Jesse M. - 2021
In an earlier article, The Uneasy Case for the Priority of Secured Claims in Bankruptcy,' 105 Yale Law Journal 857 (1996), we suggested that the case for a full priority of secured claims in bankruptcy is an uneasy one. In this paper, we address various reactions and objections to our analysis...
Persistent link: https://www.econbiz.de/10013242902
Cover Image
Markets and Housing Finance
Warnock, Veronica Cacdac - 2015
, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws …
Persistent link: https://www.econbiz.de/10012750378
Cover Image
Optimal Debt and Profitability in the Tradeoff Theory
Abel, Andrew B. - 2015
I develop a dynamic model of leverage with tax deductible interest and an endogenous cost of default. The interest rate includes a premium to compensate lenders for expected losses in default. A borrowing constraint is generated by lenders' unwillingness to lend an amount that would trigger...
Persistent link: https://www.econbiz.de/10013015555
Cover Image
Optimal Taxation in the Presence of Bailouts
Panageas, Stavros - 2010
The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs … liquidation and the associated deadweight costs. It is shown that the optimal taxation policy to finance such transfers exhibits …
Persistent link: https://www.econbiz.de/10013150643
Cover Image
Bankruptcy and the Collateral Channel
Benmelech, Efraim - 2010
Do bankrupt firms impose negative externalities on their non-bankrupt competitors? We propose and analyze a collateral … channel in which a firm's bankruptcy reduces collateral values of other industry participants, thereby increasing the cost of … external debt finance industry wide. To identify this collateral channel, we use a novel dataset of secured debt tranches …
Persistent link: https://www.econbiz.de/10013148372
Cover Image
Bankruptcy and the Cost of Organized Labor : Evidence from Union Elections
Campello, Murillo - 2017
Unionized workers are entitled to special treatment in bankruptcy court. This can be detrimental to other corporate stakeholders in default states, with unsecured creditors standing to lose the most. Using data on union elections covering several decades, we employ a regression discontinuity...
Persistent link: https://www.econbiz.de/10012946497
Cover Image
Market Response to Policy Initiatives During the Global Financial Crisis
Ait-Sahalia, Yacine - 2010
This paper examines the impact of macroeconomic and financial sector policy announcements in the United States, the United Kingdom, the euro area, and Japan during the recent crisis on interbank credit and liquidity risk premia. Announcements of interest rate cuts, liquidity support, liability...
Persistent link: https://www.econbiz.de/10013146945
Cover Image
Did the Reform Fix the London Fix Problem?
Ito, Takatoshi - 2017
that banks, by avoiding (even the appearance of) collusion, now incur the costs of executing customers' orders …
Persistent link: https://www.econbiz.de/10012958583
Cover Image
The Pension Cost of Changing Jobs
Allen, Steven G. - 2010
Workers covered by defined benefit pension plans receive lower benefits at retirement if they leave their current job before reaching retirement age. This study estimates the magnitude of this pension loss for workers in the May 1983 supplement of the Current Population Survey, using pension...
Persistent link: https://www.econbiz.de/10013141150