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focusing on the respective roles of private information and borrower proximity. Although credit availability and the offered … rates and borrowers' decision to switch lenders we find strong evidence for the informational capture of good credit risks …. Our results shed new light on the importance of soft information in informationally opaque credit markets and show how …
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reliance on public or private information then determines the predicted trade-off between availability and pricing of credit …
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Little is known of the effects of the auction mechanism in relation to post-auction market sale. This empirical study of 966 unsuccessful auction observations over a period of almost five years is an initial attempt to provide insights on post auction effects. Approximately half of these...
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Repo auctions are used to inject central bank funds against collateral into the banking sector. The ECB uses standard discriminatory auctions and hundreds of banks participate. The amount auctioned over the monthly reserve maintenance period is in principle exactly what banks collectively need...
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We perform a panel analysis of bidding in the Eurosystem auctions, using individual data that include the bidder code, size, nationality and membership in a banking group. We find that an increase in interest rate volatility lowers the probability of bidding, but induces bidders to shade rates...
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promoting the efficiency of credit markets when a bank's ability to gather information varies with its distance to the borrower …
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We study bidder behavior and performance in 53 main refinancing operations (quot;repo auctionsquot;) of the European Central Bank (ECB). The data set starts with the first auction after the ECB changed from fixed rate tenders to variable rate tenders. We find that private information and the...
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