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The impact of securitization on the expansion of subprime credit
Nadauld, Taylor D.; Sherlund, Shane M. - In: Journal of Financial Economics 107 (2013) 2, pp. 454-476
This paper investigates the relationship between securitization activity and the extension of subprime credit. The … the years 2003 and 2005. Second, the securitization of subprime loans increased substantially over the same time period … securitization activity of investment banks was driven by forces exogenous to factors impacting lending decisions in the primary …
Persistent link: https://www.econbiz.de/10010616821
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Lessons from the 2007 Financial Crisis
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007
The paper studies the causes of the current financial crisis and considers proposals for mitigation and prevention of future crises. The crisis is was the product of a ‘perfect storm’ bringing together a number of microeconomic and macroeconomic pathologies. Among the microeconomic systemic...
Persistent link: https://www.econbiz.de/10005791213
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Subprime mortgages and the MBSs in generating and transmitting the global financial crisis
Jurek, Michal; Marszalek, Pawel - Financialisation, Economy, Society & Sustainable … - 2014
The paper addresses numerous factors which generated and transmitted the 2007-2009 financial crisis, with the special attention paid to phenomena observed in the subprime mortgages and MBSs markets. The aim of the paper is to provide a critical survey which systematically examine the literature...
Persistent link: https://www.econbiz.de/10010933416
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Preventing the Next Great Meltdown
Levine, David - In: Journal of Financial Transformation 30 (2010), pp. 95-104
The regulatory framework established during the Great Depression was dismantled in stages after 1969. The deregulation of deposits at banks and savings institutions created incentives to widen the scope of investments that banks and thrifts could make. Novel instruments were created that should...
Persistent link: https://www.econbiz.de/10008751495
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Are Sovereign Credit Ratings Pro-Cyclical? A Controversial Issue Revisited in Light of the Current Financial Crisis Abstract: With the present work I aim to shed new light on the d...
Giacomino, Paolo - In: Rivista di Politica Economica (2013) 4, pp. 79-111
Persistent link: https://www.econbiz.de/10010858722
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The Joint Dynamics of Sovereign Ratings and Government Bond Yields
El-Shagi, Makram; Schweinitz, Gregor von - Institut für Wirtschaftsforschung Halle (IWH) - 2015
In the present paper, we build a bivariate semiparametric dynamic panel model to repro-duce the joint dynamics of sovereign ratings and government bond yields. While the individual equations resemble Pesaran-type cointegration models, we allow for different long-run relationships in both...
Persistent link: https://www.econbiz.de/10011212713
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RATING AGENCIES AND INFORMATION EFFICIENCY: DO MULTIPLE CREDIT RATINGS PAY OFF?
Morkoetter, Stefan; Stebler, Roman; Westerfeld, Simone - School of Finance, Universität St. Gallen - 2015
We empirically investigate why issuers solicit and pay for multiple ratings not only at issuance but also during the monitoring phase of a debt instrument. Using a unique record of monthly credit rating migration data from Standard & Poor's, Moody's, and Fitch on all U.S. residential...
Persistent link: https://www.econbiz.de/10011213800
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Rating Agencies on the International Financial Market: an Approach in Terms of the Transaction Cost Economy
DUDIAN, Monica - In: Timisoara Journal of Economics 3 (2010) 3(11), pp. 139-146
Rating agencies, by the assigned risk grades, point out the quality of debtors and credit instruments in terms of the probability to cease payments and the recovery possibilities. The existence and development of rating agencies on the capital markets is generally explained by the capacity they...
Persistent link: https://www.econbiz.de/10009291548
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Rating agencies, self-fulfilling prophecy and multiple equilibria? An empirical model of the European sovereign debt crisis 2009-2011
Gärtner, Manfred; Griesbach, Björn - School of Economics and Political Science, Universität … - 2012
We explore whether experiences during Europe's sovereign debt crisis support the notion that governments faced scenarios of self-fulfilling prophecy and multiple equilibria. To this end, we provide estimates of the effect of interest rates and other macroeconomic variables on sovereign debt...
Persistent link: https://www.econbiz.de/10010552289
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Two-sided Certification: The market for Rating Agencies
Fasten, Erik R.; Hofmann, Dirk - Volkswirtschaftliche Fakultät, … - 2010
Certifiers contribute to the sound functioning of markets by reducing a symmetric information. They, however, have been heavily criticized during the 2008-09 financial crisis. This paper investigates on which side of the market a monopolistic profit-maximizing certifier offers his service. If...
Persistent link: https://www.econbiz.de/10010556723