Similar Search Results

Corbae, Dean - 2013

How much of the recent rise in foreclosures can be explained by the large number of high-leverage mortgage contracts … originated during the housing boom? We present a model where heterogeneous households select from a set of mortgage contracts and … choose whether to default on their payments given realizations of income and housing price shocks. The set of mortgage …

Persistent link: https://www.econbiz.de/10012459338

CMBS Subordination, Ratings Inflation, and the Crisis of 2007-2009

Stanton, Richard - 2010

This paper analyzes the performance of the commercial mortgage-backed security (CMBS) market before and during the … mortgage market) the loans underlying CMBS did not significantly change their characteristics during this period, commercial …

Persistent link: https://www.econbiz.de/10012462449

Integration of Mortgage and Capital Markets and the Accumulation of Residential Capital

Hendershott, Patric H. - 1989

conventional commitment mortgage coupon rates in terms of current and lagged values of this perfect-market coupon rate. Finally, we …

Persistent link: https://www.econbiz.de/10012476209

Complex Mortgages

Amromin, Gene - 2011

credit scores, in contrast to the low income population targeted by subprime mortgages. Complex mortgage borrowers have … significantly higher delinquency rates than traditional mortgage borrowers even after controlling for leverage, payment resets, and …

Persistent link: https://www.econbiz.de/10012461342

Leverage Dynamics and Financial Flexibility

Bolton, Patrick - 2020

We develop a q theory of investment with endogenous leverage, payout, hedging, and risk-taking dynamics. The key frictions are costly equity issuance and incomplete markets. We show that the marginal source of external financing on an on-going basis is debt. The firm lowers its debt when making...

Persistent link: https://www.econbiz.de/10012479326

Financial Structure, Macroeconomic Stability and Monetary Policy

Cecchetti, Stephen G. - 2001

Over the past twenty years, macroeconomic performance has improved markedly in industrialized and developing countries alike. Both inflation and real growth are more stable now than they were in the 1980s. This stability has been accompanied by dramatic changes in financial structure. We examine...

Persistent link: https://www.econbiz.de/10012470366

Internal versus External Capital Markets

Gertner, Robert H. - 1994

This paper presents a framework for analyzing the costs and benefits of internal vs. external capital allocation. We focus primarily on comparing an internal capital market to bank lending. While both represent centralized forms of financing, in the former case the financing is owner-provided,...

Persistent link: https://www.econbiz.de/10012474143

Views on the Likelihood of Financial Crisis

Friedman, Benjamin M. - 1990

A review of major lines of thinking about developments in the 1980s bearing on the likelihood of a financial crisis in the United States supports four principal conclusions:<br>First, financial crises have historically played a major role in large fluctuations in business activity. A financial...

Persistent link: https://www.econbiz.de/10012475624

The Leverage Effect Puzzle : Disentangling Sources of Bias at High Frequency

Ait-Sahalia, Yacine - 2011

The leverage effect refers to the generally negative correlation between an asset return and its changes of volatility. A natural estimate consists in using the empirical correlation between the daily returns and the changes of daily volatility estimated from high-frequency data. The puzzle lies...

Persistent link: https://www.econbiz.de/10012461065

Leverage and Stablecoin Pegs

Gorton, Gary; Klee, Elizabeth; Ross, Chase P.; Ross, … - National Bureau of Economic Research - 2022

Money is debt that circulates with no questions asked. Stablecoins are a new form of private money that circulate with many questions asked. We show how stablecoins can maintain a constant price even though they face run risk and pay no interest. Stablecoin holders are indirectly compensated for...

Persistent link: https://www.econbiz.de/10013477289

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