large adverse effect on the supply of international credit offered to them. We also show that if international creditors are … supply of credit to dry up completely. We therefore offer one possible explanation for why emerging markets may find …

What is the impact of granular credit risk on banks and on the economy? We provide the first causal identification of … banks portfolios. We also find that this granular credit risk spills over from affected banks to firms, decreases investment …

-time measures of economic activity. Importantly, the predictor set includes option-adjusted credit spread indexes based on bond … portfolios sorted by maturity and credit risk as measured by the issuer's "distance-to-default." The portfolios are constructed … portfolio credit spreads in the set of predictors--BMA consistently assigns a high posterior weight to models that include these …

prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits … going to the riskiest borrowers, who have the most incentive to refinance in response to positive credit shocks. Empirical … access to credit and raising rates for the least creditworthy borrowers …

-- high liquidity and low credit risk. Indeed, we find that our "noise'' measure captures episodes of liquidity crises of …

information asymmetries when delivering credit to the poor. This paper proposes an empirical method to address the potential …