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Interest rate derivatives and asset-liability management by commercial banks

Simons, Katerina - In: New England Economic Review (1995) Jan, pp. 17-28

Bank participation in derivative markets has risen sharply in recent years. The total amount of interest rate, currency, commodity, and equity contracts at U.S. commercial and savings banks soared from $6.8 trillion in 1990 to $11.9 trillion in 1993, an increase of 75 percent. A major concern...

Persistent link: https://www.econbiz.de/10005428451

Stocks, bonds, options, futures, and portfolio insurance: a rose by any other name

Fortune, Peter - In: New England Economic Review (1995) Jul, pp. 25-46

Trading volume and open interest in options and futures contracts on stock indices, equities, and interest rate instruments traded on world exchanges have experienced remarkable growth. However, this growth has been accompanied by controversy about the proper role of financial derivatives and...

Persistent link: https://www.econbiz.de/10005428452

Managing risk in the 90's: what should you be asking about derivatives?

Minehan, Cathy E.; Simons, Katerina - In: New England Economic Review (1995) Sep, pp. 3-25

Derivatives are the fastest-growing financial instruments of our time. When used strategically, they can be very effective tools to mitigate risks. When used to speculate, that is, to bet on the inefficiency of financial markets, they can be trouble, especially if you are unaware that you are...

Persistent link: https://www.econbiz.de/10005729183

A real, affordable mortgage

Peek, Joe; Wilcox, James A. - In: New England Economic Review (1991) Jan, pp. 51-66

mortgage’s life as with a level nominal payment mortgage, real payments on a PLAM are constant. Thus, PLAMs can be offered with … payments that for several years are likely to be substantially below those on either fixed rate or adjustable rate mortgages …. Other things equal, this rearrangement of the real payment burden allows more potential homebuyers to qualify for mortgages. …

Persistent link: https://www.econbiz.de/10005526661

Gifts for home purchase and housing market behavior

Engelhardt, Gary V.; Mayer, Christopher J. - In: New England Economic Review (1994) May, pp. 47-58

Rapid increases in house prices can make home ownership more difficult for prospective first-time home buyers by increasing the required down payment amount and, if the increases outpace income growth, by increasing the ratio of mortgage payments to income. In response to such constraints,...

Persistent link: https://www.econbiz.de/10005526730

Mortgage lending in Boston: a response to the critics

Browne, Lynn Elaine; Tootell, Geoffrey M.B. - In: New England Economic Review (1995) Sep, pp. 53-78

Hispanic applicants were two to three times as likely to be turned down for mortgages as white applicants. The study gathered …

Persistent link: https://www.econbiz.de/10005428518

Defaults, denials, and discrimination in mortgage lending

Tootell, Geoffrey M.B. - In: New England Economic Review (1993) Sep, pp. 45-51

The results of the study of discrimination in mortgage lending by Munnell, Browne, McEneaney, and Tootell (1992) have been questioned by some who claim that the authors failed to control adequately for the expected profitability of each loan. Critics assert that an examination of default rates...

Persistent link: https://www.econbiz.de/10005428569

A call to ARMs: adjustable rate mortgages in the 1980s

Peek, Joe - In: New England Economic Review (1990) Mar, pp. 47-61

Adjustable rate mortgages, long-term loans that provide for interest rate changes at regular intervals over their … mortgages probably account for close to 25 percent of total home mortgage debt. ; While adjustable rate mortgages (ARMs) have …

Persistent link: https://www.econbiz.de/10005729125

A new look at reverse mortgages: potential market and institutional constraints

Mayer, Christopher J.; Simons, Katerina V. - In: New England Economic Review (1994) Mar, pp. 15-26

limited income. Reverse mortgages hold the promise of helping elderly homeowners out of this bind by allowing them to borrow …. ; Although reverse mortgages have been offered for more tl~an a decade, the market has never gained significant size. This … afticle demonstrates a large potential market for reverse mortgages and discusses demand and supply explanations as to why the …

Persistent link: https://www.econbiz.de/10005729175