particular for collateral that saves more on regulatory capital …

borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information … sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both … collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that …

We study a dynamic model of collateralized lending under adverse selection in which the quality of collateral assets is …

perapplicant fixed costs in screening. We then demonstrate that our theory fits the data better than the main alternative theory … already in the literature, which supposes cutoff rules are exogenously used by securitizers. Furthermore, we use our theory to …

research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … model that rationalizes such an origination rule of thumb. Under this alternative theory, jumps in default are not evidence … securitization rule-of-thumb theory but consistent with the origination rule-of-thumb theory. There are jumps in the number of loans …

lending to bad projects under loose standards with inefficient collateral liquidation under tight standards …

anonymous markets. We study other market features, such as contract novation, default fund and collateral. In anonymous markets …, novation and default fund reduce the risk of systemic runs. Collateral aligns private incentives with the socially optimal …