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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/10012456665

Credit Smoothing

Hundtofte, Sean - 2019

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and …

Persistent link: https://www.econbiz.de/10012480298

Credit Spreads as Predictors of Real-Time Economic Activity : A Bayesian Model-Averaging Approach

Faust, Jon - 2011

Employing a large number of real and financial indicators, we use Bayesian Model Averaging (BMA) to forecast real-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...

Persistent link: https://www.econbiz.de/10012461932

Competitive Lending with Partial Knowledge of Loan Repayment

Brock, William A. - 2008

We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while...

Persistent link: https://www.econbiz.de/10012464269

An Empirical Study of the Credit Market with Unobserved Consumer Typers

Gan, Li - 2008

This paper proposes an econometric model to identify unobserved consumer types in the credit market. Consumers choose different amounts of loan because of differences in their time or risk preferences (types). Thus, the unconditional probability of default is modeled using a mixture density...

Persistent link: https://www.econbiz.de/10012464774

Riding the Credit Boom

Hansman, Christopher - 2018

Research on leverage and asset-price fluctuations focuses on the direct effect of lax bank lending enabling financially-constrained investors to take excessive risks. Ignored are unconstrained investors speculating on higher prices during credit booms. To identify these two effects, we utilize...

Persistent link: https://www.econbiz.de/10012453131

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/10012464773

Repossession and the Democratization of Credit

Assunção, Juliano J. - 2012

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/10012460801

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

Huneeus, Federico; Kaboski, Joseph Paul; Larraín, Mauricio - National Bureau of Economic Research - 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/10012938743

Collateral Damage : The Impact of Shale Gas on Mortgage Lending

Chen, Yanyou; Roberts, James W.; Timmins, Christopher; … - National Bureau of Economic Research - 2021

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/10012696403

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