find that borrowers with a high probability of default are more responsive to maturity than interest rate changes. I also … argue that risk-based pricing may lead to an increase in loan maturity and loan default, rather than alleviating the adverse … selection present on the lending market. Empirical evidence suggests that loan performance is time-dependent and default depends …

This paper examines the disparity in default risk between vulnerable and non-vulnerable populations in consumer lending … the probability of default. We find that vulnerable individuals have a higher risk than non-vulnerable individuals …. Specifically, interest rates explain at least 30 percent of the risk gap. We also find that the default probabilities faced by …

We study whether a default option attached to non-recourse mortgages improves borrowers' surplus from mortgage … default rates. We find that the interest rate of non-recourse mortgage decreases with the borrower's surplus from home …

significantly reduces severe financial distress, decreasing the likelihood of filing for bankruptcy by 61% in the three years …

(including unsecured debt, liquid assets, and illiquid assets) play in default decisions. In sharp contrast to prior studies that … strongest predictor of default. We find that individual unemployment increases the probability of default by 5 - 13 percentage … points, ceteris paribus, compared with the sample average default rate of 3.9 percent. We also find that only 13.9 percent of …

Whereas recent studies on revolving lines of credit suggest a positive relationship between exposure at default and … default probability on the line, this paper considers the relationship between two financial instruments through the … simultaneous analysis of credit line utilization and default probability on a personal loan. We model both financial instruments …

Strategic default behavior suggests that the default process is not only a matter of inability to pay. Economic costs … and benefits affect the incidence and timing of defaults. As with prior research, the authors find that people default … strategically as their home value falls below the mortgage value (exercise the put option to default on their first mortgage). While …