bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

, funding costs, and prudential regulation. A bank’s choice of encumbrance trades off the benefit of expanding profitable …

, funding costs, and prudential regulation. A bank's choice of encumbrance trades off the benefit of expanding profitable …

bank-level data for German banks, we find evidence that a bank's exposure to interest rate risk depends on its presumed … optimization horizon. The longer the presumed optimization horizon is, the more the bank is exposed to interest rate risk in its … exposure to interest rate risk. The more a bank is exposed to the risk of a decline in the interest rate level, the higher its …

per year. In competitive lending markets, a change of this magnitude would have doubled or tripled spreads, because bank …