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Banks and other lenders often transfer credit risk to liberate capital for further loan intermediation. This paper aims to explore the design, prevalence and effectiveness of credit risk transfer (CRT). The focus is on the costs and benefits for the efficiency and stability of the financial...
Persistent link: https://www.econbiz.de/10003750969
In this paper, the practice of using patents as collateral for debt has been studied. To this aim, the USPTO Patent … agreement records, in which 133,110 patents are pledged as collateral for debt. Nearly 70% of the patents are associated with a … younger pledged patents, when firms that pledge patents as collateral are larger, and lenders are more experienced in handling …
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A version of the Kiyotaki and Moore (1997) model of credit cycles is used to examine the extent to which a crisis in a country can spread to another seemingly unrelated country. The model features two small open economies that face credit constraints and produce a differentiated commodity which...
Persistent link: https://www.econbiz.de/10014127919
A version of the Kiyotaki and Moore (1997) model of credit cycles is used to examine the extent to which a crisis in a country can spread to another seemingly unrelated country. The model features two small open economies that face credit constraints and produce a differentiated commodity which...
Persistent link: https://www.econbiz.de/10014127921
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collateral to support arbitrage trades. We show that with volatile asset demands, arbitrage becomes risky. With information … frictions, a looser collateral policy might render the economy more vulnerable to extremely large demand shocks, while a tighter … collateral constraint helps maintain the stability at the cost of market liquidity supply …
Persistent link: https://www.econbiz.de/10011874838