relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of … collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by … economic theory. For our sample, collateral overall is associated with lower loan risk premiums and a higher probability of ex …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

scarcity value of Treasury collateral by estimating the impact of security-specific demand and supply factors on the repo rates … shortages of high-quality collateral. …

In the aftermath of the global financial crisis, the market for unsecured credit literally dried out and collateral … than using them as collateral. The aim of this paper is to develop a non-equivalence between secured credit and outright … as collateral is a best response. …

housing is accepted as collateral. A calibration to the U.S. economy supports the theoretical results and provides novel …

In theory, the use of collateral in credit contracting should mitigate the information problems that are widely held to … be the primary cause of credit rationing. However, direct empirical evidence of the link between collateral use and … credit rationing is scant. This paper examines the relationship between collateral and credit rationing using survey data …

) and a specification of the amount of collateral per dollar of lending. The latter is summarized by the margin or "haircut …" associated with the loan. Some key models of endogenous collateral constraints imply that the primary equilibrating force will be … the part of borrowers has profound effects on asset prices. Quantitative analysis of a model of collateral equilibrium …

illiquid but solvent borrowers only) against the security of sound collateral and at above-market, penalty interest rates. Deny … tarnished collateral and/or purchasing assets of questionable value, in bailing out insolvent borrowers, in extending its …