Adverse Selection Dynamics in Privately-Produced Safe Debt Markets PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Adverse Selection Dynamics in Privately-Produced Safe Debt Markets PDF full book. Access full book title Adverse Selection Dynamics in Privately-Produced Safe Debt Markets by Nathan Foley-Fisher. Download full books in PDF and EPUB format.
Author: Nathan Foley-Fisher Publisher: ISBN: Category : Languages : en Pages :
Book Description
Privately-produced safe debt is designed so that there is no adverse selection in trade. This is because no agent finds it profitable to produce private information about the debt's backing and all agents know this (i.e., it is information-insensitive). But in some macro states, it becomes profitable for some agents to produce private information, and then the debt faces adverse selection when traded (i.e., it becomes information-sensitive). We empirically study these adverse selection dynamics in a very important asset class, collateralized loan obligations, a large symbiotic appendage of the regulated banking system, which finances loans to below investment-grade firms.
Author: Nathan Foley-Fisher Publisher: ISBN: Category : Languages : en Pages :
Book Description
Privately-produced safe debt is designed so that there is no adverse selection in trade. This is because no agent finds it profitable to produce private information about the debt's backing and all agents know this (i.e., it is information-insensitive). But in some macro states, it becomes profitable for some agents to produce private information, and then the debt faces adverse selection when traded (i.e., it becomes information-sensitive). We empirically study these adverse selection dynamics in a very important asset class, collateralized loan obligations, a large symbiotic appendage of the regulated banking system, which finances loans to below investment-grade firms.
Author: Rodney Ramcharan Publisher: ISBN: Category : Asset-backed financing Languages : en Pages : 54
Book Description
"This paper studies how the collapse of the asset backed securities (ABS) market during the financial crisis of 2007-2009 affected the supply of credit to the broader economy using a new dataset that describes unique interbank relationships within the credit union industry. This industry is important for consumer finance, and we find that ABS related losses at correspondent credit unions are associated with a large contraction in the supply of consumer credit and a hoarding of cash among downstream credit unions. We also find that this contraction in credit supply was concentrated among downstream credit unions that began the crisis with lower capital asset ratios, and that it may have amplified the initial decline in house prices. These results suggest that capital regulation might shape the ability of financial institutions to transmit securities price volatility onto the real economy."--Abstract.
Author: Silvia Iorgova Publisher: International Monetary Fund ISBN: 1513566415 Category : Business & Economics Languages : en Pages : 42
Book Description
Outside of financial crises, investors have little incentive to produce private information on banks’ short-term liabilities held as information-insensitive safe assets. The same does not hold true during crises. We measure daily information production using data from credit default swap spreads during the global financial crisis and the subsequent European debt crisis. We study abnormal information production around major events and interventions during these crises and find that, on average, capital injections reduced abnormal information production while early European stress tests increased it. We also link information production to outcomes: high levels of information production predict bank balance sheet contraction and higher government expenditures to support financial institutions. In an addendum, we show information production on nonfinancials dramatically increased relative to financials at the height of the COVID-19 crisis, reflecting the nonfinancial nature of the initial shock.
Author: Gene Amromin Publisher: DIANE Publishing ISBN: 1437987850 Category : Business & Economics Languages : en Pages : 57
Book Description
CM became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans (interest only, negative amortization, and teaser mortgages) enable households to postpone loan repayment compared to traditional mortgages and hence relax borrowing constraints. But, they increase household leverage and heighten dependence on mortgage refinancing. CM were chosen by prime borrowers with high income levels seeking to purchase expensive houses relative to their incomes. Borrowers with CM experience substantially higher ex post default rates than borrowers with traditional mortgages with similar characteristics. Illus. This is a print on demand report.
Author: R. Glenn Hubbard Publisher: University of Chicago Press ISBN: 9780226355887 Category : Business & Economics Languages : en Pages : 420
Book Description
Warnings of the threat of an impending financial crisis are not new, but do we really know what constitutes an actual episode of crisis and how, once begun, it can be prevented from escalating into a full-blown economic collapse? Using both historical and contemporary episodes of breakdowns in financial trade, contributors to this volume draw insights from theory and empirical data, from the experience of closed and open economies worldwide, and from detailed case studies. They explore the susceptibility of American corporations to economic downturns; the origins of banking panics; and the behavior of financial markets during periods of crisis. Sever papers specifically address the current thrift crisis—including a detailed analysis of the over 500 FSLIC-insured thrifts in the southeast—and seriously challenge the value of recent measures aimed at preventing future collapse in that industry. Government economists and policy makers, scholars of industry and banking, and many in the business community will find these timely papers an invaluable reference.
Author: M. Ayhan Kose Publisher: World Bank Publications ISBN: 1464815453 Category : Business & Economics Languages : en Pages : 403
Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Author: Ingrid A. Ukstins Publisher: ISBN: 9781792461804 Category : Languages : en Pages : 277
Book Description
OUR PLANET IS A DYNAMIC PLACE There are numerous recent geological occurrences of life-changing events: earthquakes in Japan and the southwestern Pacific Ocean, the tsunami in South Asia, hurricanes in the Atlantic Ocean and typhoons in the Pacific, widespread flooding in the Midwest, as well as wildfires in California to name a few. Earth's Natural Hazards: Understanding Natural Disasters%Catastrophes will help students understand the geologic background of these life-changing events and the dynamic and sometimes interrelated nature, of the Earth's geologic processes. This book goes beyond the geologic aspect of the disasters and discusses the human impact, climate change, and biological hazards that often result from major life-changing events. Earth's Natural Hazards features: a full-color text with photos, graphs, and maps to help illustrate the broad range of natural disasters that are discussed. Questions for Thought at the end of each chapter. several web sites that serve as additional resources. brief lists of selected references and reading material. a discussion of objects from outer space which provides information about hazards that are extraterrestrial.
Author: Nathan Foley-Fisher
Author: Nathan Foley-Fisher
Author: Nathan Foley-Fisher
Author: Gilles Chemla
Author: Rodney Ramcharan
Author: Silvia Iorgova
Author: Gene Amromin
Author: Bruce C. Greenwald
Author: R. Glenn Hubbard
Author: M. Ayhan Kose
Author: Ingrid A. Ukstins