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Bank Entry, Competition, and the Market for Corporate Securities Underwriting

Gande, Amar - 2002

Commercial banks have been a relatively recent entrant into the corporate securities underwriting market as a result of certain relaxations of the Glass-Steagall Act (especially Section 20 of the Act). The Congress and the academia have been debating the benefits and costs of allowing commercial...

Persistent link: https://www.econbiz.de/10012741985

Organization Structure and Credibility : Evidence from Commercial Bank Securities Activities Before the Glass-Steagall Act

Kroszner, Randall - 1998

We examine the two ways in which U.S. commercial banks organized their investment banking operations before the 1933 Glass-Steagall Act forced the banks to leave the securitiesbusiness: as an internal securities department within the bank and as a separately incorporated affiliate with its own...

Persistent link: https://www.econbiz.de/10012744378

Are Universal Banks Better Underwriters? Evidence From the Last Days of the Glass-Steagall Act

Focarelli, Dario; Marques-Ibanez, David; Pozzolo, Alberto F. - 2021

’s restrictions. Securities underwritten by commercial banks’ subsidiaries have a higher probability of default than those … gain market share and or to the lower initial ability of these banks to correctly evaluate default risk …

Persistent link: https://www.econbiz.de/10013316115

Powerpoint Presentation of Secret Liens and the Financial Crisis of 2008; Paving the Way for the Next Financial Crisis

Simkovic, Michael - 2010

This article explains the roots of financial crises in one of the oldest and most fundamental problems of commercial law: hidden leverage. Common law courts wrestled with this problem for centuries and developed a time – tested solution: the doctrine of secret liens. If the debtor becomes...

Persistent link: https://www.econbiz.de/10013142417

Securitization and Moral Hazard : Evidence from Credit Score Cutoff Rules

Bubb, Ryan - 2013

A growing literature exploits credit score cutoff rules used by mortgage lenders as a natural experiment to estimate the moral hazard effect of securitization on underwriting. This research design is premised on the assumption that these cutoff rules are a response by lenders to securitization...

Persistent link: https://www.econbiz.de/10013095622

Conflicts of Interest in Financial Markets - Evidence from Bond Underwriting in the Nineties.

Focarelli, Dario; Pozzolo, Alberto Franco - Dipartimento di Economia, Gestione, Società e … - 2005

(the ‘naïve investor’ hypothesis). The empirical analysis compares the default rates between 2000 and 2002 of a sample of … investment houses and by commercial banks had the same probability of default. However, investment-grade issues underwritten by … commercial banks had a lower probability of default than those underwritten by investment houses, while the reverse was true for …

Persistent link: https://www.econbiz.de/10005583213

Informational Efficiency of Credit Ratings

Aggarwal, Nidhi; Singh, Manish; Thomas, Susan - 2022

frequency measures such as the Distance to Default, along with low frequency firm characteristics such as ownership structure …

Persistent link: https://www.econbiz.de/10014239653

Option-Based Credit Spreads

Culp, Christopher L.; Nozawa, Yoshio; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2014

Theoretically, corporate debt is economically equivalent to safe debt minus a put option on the firm’s assets. We empirically show that indeed portfolios of long Treasuries and short traded put options ("pseudo bonds") closely match the properties of traded corporate bonds. Pseudo bonds...

Persistent link: https://www.econbiz.de/10011145468

Manager- und transaktionsspezifische Determinanten der Performance von Arbitrage CLOs

Scholz, Julia - 2011

Der vorliegende Beitrag untersucht die Determinanten der Performance europäischer Arbitrage Collateralized Loan Obligations für das Jahr 2009. Der Fokus liegt dabei auf der Bedeutung der performanceabhängigen Vergütung des CLO-Managers, den Eigenschaften des CLO-Managers und der...

Persistent link: https://www.econbiz.de/10008903410

Volatility patterns of CDS, bond and stock markets before and during the financial crisis : evidence from major financial institutions

Belke, Ansgar; Gokus, Christian - 2011

clustering. But very few studies dealing with credit default swaps account for the characteristics of the variances. Our aim is … series. -- Bond markets ; credit default swaps ; credit risk ; financial crisis ; GARCH ; stock markets ; volatility …

Persistent link: https://www.econbiz.de/10008935244