Bongaerts, Dion; Mazzola, Francesco; Wagner, Wolf - 2021
This paper examines whether the risk of future collateral fire sales affects lending decisions. We study US mortgage … risk of joint collateral liquidation. As expected, these results are stronger when fire-sale risk is more salient. The … results suggest that fire-sale risk has implications for credit allocation, and that lenders’ collective (ex-ante) origination …