,” “borrower selection,” “risk-shifting,” and “loss mitigation” channels. Each of these four channels has different predictions … selection” channel appears to be especially important for outside collateral, the “risk-shifting” and “loss mitigation” channels …

arise because secured loans carry lower losses given default (“loss mitigation” effect). We also find that the risk … important for outside collateral, the “risk-shifting” or “loss mitigation” effects for liquid collateral, and the “borrower …