Household Debt, Adjustable-Rate Mortgages, and the Shock
... capital channel ; it coexists with the cash-flow channel focused upon by the existing literature, but rather than stressing the decline in consumption that occurs due to lesser resources, the channel I advance in this paper emphasizes how systematic policy can significantly raise mortgage default r ...
... capital channel ; it coexists with the cash-flow channel focused upon by the existing literature, but rather than stressing the decline in consumption that occurs due to lesser resources, the channel I advance in this paper emphasizes how systematic policy can significantly raise mortgage default r ...
Household Debt, Adjustable-Rate Mortgages
... capital channel ; it coexists with the cash-flow channel focused upon by the existing literature, but rather than stressing the decline in consumption that occurs due to lesser resources, the channel I advance in this paper emphasizes how systematic policy can significantly raise mortgage default r ...
... capital channel ; it coexists with the cash-flow channel focused upon by the existing literature, but rather than stressing the decline in consumption that occurs due to lesser resources, the channel I advance in this paper emphasizes how systematic policy can significantly raise mortgage default r ...
Joint Center for Housing Studies Harvard University
... Starting in 2007, the national decline in home prices created a negative feedback effect that triggered and then prolonged the ensuing recession.5 As home prices dropped, more and more homeowners fell into negative equity when the balances on their mortgages came to exceed the value of their homes. ...
... Starting in 2007, the national decline in home prices created a negative feedback effect that triggered and then prolonged the ensuing recession.5 As home prices dropped, more and more homeowners fell into negative equity when the balances on their mortgages came to exceed the value of their homes. ...
Pillar 3 Disclosures Quantitative Disclosures As at 31
... credit portfolios and the Standardised Approach (“SA”) to all other credit exposures. The Group applies the respective Standardised Approaches for operational and market risks. The Group's capital requirements are based on the principles of consolidation adopted in the preparation of its financial s ...
... credit portfolios and the Standardised Approach (“SA”) to all other credit exposures. The Group applies the respective Standardised Approaches for operational and market risks. The Group's capital requirements are based on the principles of consolidation adopted in the preparation of its financial s ...
Macroeconomic Effects of Secondary Market
... bankers achieve these (same) returns. When total intermediary net worth is scarce and funding interest rates are low, financiers employ more leverage than bankers, and earn disproportionately high returns when this risk-taking behavior pays off. Indeed, because bankers highly value increased borrowi ...
... bankers achieve these (same) returns. When total intermediary net worth is scarce and funding interest rates are low, financiers employ more leverage than bankers, and earn disproportionately high returns when this risk-taking behavior pays off. Indeed, because bankers highly value increased borrowi ...
ANNUAL REPORT - Credit Libanais
... supporting stability in the lives of Lebanese families, by extending various affordable housing loan schemes: in this context, BDL subsidized housing loans increased by 66%; and other housing loans increased by 10%. Furthermore, in view of creating value for small and medium enterprises while suppor ...
... supporting stability in the lives of Lebanese families, by extending various affordable housing loan schemes: in this context, BDL subsidized housing loans increased by 66%; and other housing loans increased by 10%. Furthermore, in view of creating value for small and medium enterprises while suppor ...
Advance America Compared to All Other
... how we can hope to address the problem before we know what it is” (Federal Reserve Bank of New York, 2007). In the absence of clear definitions, the argument for restricting payday lending relies on two principles. First, the argument is that payday lending is “predatory,” based on the idea that pa ...
... how we can hope to address the problem before we know what it is” (Federal Reserve Bank of New York, 2007). In the absence of clear definitions, the argument for restricting payday lending relies on two principles. First, the argument is that payday lending is “predatory,” based on the idea that pa ...
The Swaps Market: A Case Study Detailing Market
... such back-to-back loans required one counterparty to find another counterparty with mirror image needs – often an exhaustive task for a corporation. Secondly, as these back-to-back loans were two different loans, they were evidenced by two loan agreements, completely separate from one another (Mars ...
... such back-to-back loans required one counterparty to find another counterparty with mirror image needs – often an exhaustive task for a corporation. Secondly, as these back-to-back loans were two different loans, they were evidenced by two loan agreements, completely separate from one another (Mars ...
Credit Misallocation During the Financial Crisis
... These are our main results. In terms of lending, we find that low-capital banks engaged in significantly more zombie lending, compared to other banks. This effect is only present from 2008 onwards, and it is not apparent before the financial crisis, possibly because capital ratios were not yet a con ...
... These are our main results. In terms of lending, we find that low-capital banks engaged in significantly more zombie lending, compared to other banks. This effect is only present from 2008 onwards, and it is not apparent before the financial crisis, possibly because capital ratios were not yet a con ...
ESSAYS ON LEARNING, INFORMATION, AND EXPECTATIONS IN MACROECONOMICS AND FINANCE
... challenge is to provide tractable and insightful models which are also consistent with the data. This thesis provides both theoretical and empirical contributions to this endeavor. The first chapter focuses on the role of time-varying information production in characterizing the dynamics of business ...
... challenge is to provide tractable and insightful models which are also consistent with the data. This thesis provides both theoretical and empirical contributions to this endeavor. The first chapter focuses on the role of time-varying information production in characterizing the dynamics of business ...
Design of Financial Securities: Empirical Evidence from Private-label RMBS Deals
... our sample period. These laws put stricter requirements on the lenders in terms of their lending practices and disclosure policy which, on the margin, made it more difficult for the lenders to originate poor-quality loans. Such a government regulation should reduce the lemons problem in the market, ...
... our sample period. These laws put stricter requirements on the lenders in terms of their lending practices and disclosure policy which, on the margin, made it more difficult for the lenders to originate poor-quality loans. Such a government regulation should reduce the lemons problem in the market, ...
DOWNLOAD PAPER
... business cycle features of output, the current account, and the interest differential for post1975 Canadian data. In particular, the Baseline version correctly predicts that the current account and the interest differential are less volatile than output, and that the current account is countercyclic ...
... business cycle features of output, the current account, and the interest differential for post1975 Canadian data. In particular, the Baseline version correctly predicts that the current account and the interest differential are less volatile than output, and that the current account is countercyclic ...
Advertising guide - Promote general financing and No Interest if
... Click the tabs at the top of each page ...
... Click the tabs at the top of each page ...
CREDIT FUNDS INSIGHT 01 May 2016 Issue 6, May 2016
... managers cannot fulfil the retention requirements as set out in CRR, and the EBA has closed the door on the additional flexibility needed to allow this. However, the Technical Standards have allowed some flexibility around sponsors holding the retention. Where there is more than one sponsor of the t ...
... managers cannot fulfil the retention requirements as set out in CRR, and the EBA has closed the door on the additional flexibility needed to allow this. However, the Technical Standards have allowed some flexibility around sponsors holding the retention. Where there is more than one sponsor of the t ...
Major Points
... that a $0 NPV outcome is to be expected under very competitive market conditions — and the securities markets in which bonds and shares of stock trade are very competitive, with buyers’ quest to pay as little as possible interacting with sellers’ quest to receive as much as possible to drive prices ...
... that a $0 NPV outcome is to be expected under very competitive market conditions — and the securities markets in which bonds and shares of stock trade are very competitive, with buyers’ quest to pay as little as possible interacting with sellers’ quest to receive as much as possible to drive prices ...
0001053532-17-000022 - Lasalle Hotel Properties
... The consolidated financial statements include the accounts of the Company, the Operating Partnership, LHL and their subsidiaries in which they have a controlling interest, including joint ventures. All significant intercompany balances and transactions have been eliminated. Use of Estimates The prep ...
... The consolidated financial statements include the accounts of the Company, the Operating Partnership, LHL and their subsidiaries in which they have a controlling interest, including joint ventures. All significant intercompany balances and transactions have been eliminated. Use of Estimates The prep ...
A Model of Liquidity Provision with Adverse Selection
... To answer these questions, I propose a model with two different spot markets that can be used by agents to share their liquidity risk, which arises from idiosyncratic cost shocks. The two spot markets have distinct characteristics. One of them is an asset market that is prone to an adverse selection ...
... To answer these questions, I propose a model with two different spot markets that can be used by agents to share their liquidity risk, which arises from idiosyncratic cost shocks. The two spot markets have distinct characteristics. One of them is an asset market that is prone to an adverse selection ...
Index Growth Annuity 5 And 7
... fixed-interest insurance product with interest crediting determined in part by reference to an investment-based index, such as a Standard & Poor’s® index or a NASDAQ® index. It is important to understand that indexed products do not invest in the index used to determine the interest crediting rate; ...
... fixed-interest insurance product with interest crediting determined in part by reference to an investment-based index, such as a Standard & Poor’s® index or a NASDAQ® index. It is important to understand that indexed products do not invest in the index used to determine the interest crediting rate; ...
Financial Expertise as an Arms Race
... highly trained and highly compensated experts to design, value, and hedge the complex securities and derivatives. Unfortunately, when housing prices fell and default rates rose, the complexity of the financial instruments, and the opacity of the over-the-counter markets where they traded, made it e ...
... highly trained and highly compensated experts to design, value, and hedge the complex securities and derivatives. Unfortunately, when housing prices fell and default rates rose, the complexity of the financial instruments, and the opacity of the over-the-counter markets where they traded, made it e ...
Dealers` Hedging of Interest Rate Options in the U.S. Dollar Fixed
... indicated changes in interest rates are the option values calculated from the estimated strike prices. Chart 1 also shows, as a mirror image, the value of a hedge position that provides a delta-neutral hedge of the options at the initial interest rates (the dashed line). The hedge position is derive ...
... indicated changes in interest rates are the option values calculated from the estimated strike prices. Chart 1 also shows, as a mirror image, the value of a hedge position that provides a delta-neutral hedge of the options at the initial interest rates (the dashed line). The hedge position is derive ...
Can Local Long-term Institutional Ownership
... superior access to geography-related soft information, their presence can serve as a favorable signal in loan pricing. Such a favorable signal from the local institutions with the largest stakes in the borrower is particularly convincing because of the greater risk of under-diversification (Leland a ...
... superior access to geography-related soft information, their presence can serve as a favorable signal in loan pricing. Such a favorable signal from the local institutions with the largest stakes in the borrower is particularly convincing because of the greater risk of under-diversification (Leland a ...
- Arcadis
... the income and performance of older office buildings in most locations across the world even where there are conditions of oversupply • Frankfurt, Hamburg, Milan and London offered the greatest improvement in income and a relatively fast payback (see page 8) • The location, design and condition of ...
... the income and performance of older office buildings in most locations across the world even where there are conditions of oversupply • Frankfurt, Hamburg, Milan and London offered the greatest improvement in income and a relatively fast payback (see page 8) • The location, design and condition of ...
Foreign Direct Investment and Foreign Portfolio Investment
... between FDI and FPI is driven by lack of transparency about the fundamentals of the direct investment. If the fundamentals of each direct investment were publicly known, then liquidity shocks would not be that costly for direct investors, as the investors would be able to sell the investment at fair ...
... between FDI and FPI is driven by lack of transparency about the fundamentals of the direct investment. If the fundamentals of each direct investment were publicly known, then liquidity shocks would not be that costly for direct investors, as the investors would be able to sell the investment at fair ...
Quantifying Liquidity and Default Risks of Corporate Bonds over the
... rating classes, and future research incorporating heterogeneity of investor bases should help in this regard. Finally, the matching on 10-year bonds is less satisfactory, in that our model features a much steeper term structure of credit spreads and Bond-CDS spreads than the data suggests. Our model ...
... rating classes, and future research incorporating heterogeneity of investor bases should help in this regard. Finally, the matching on 10-year bonds is less satisfactory, in that our model features a much steeper term structure of credit spreads and Bond-CDS spreads than the data suggests. Our model ...
Credit rationing
Credit rationing refers to the situation where lenders limit the supply of additional credit to borrowers who demand funds, even if the latter are willing to pay higher interest rates. It is an example of market imperfection, or market failure, as the price mechanism fails to bring about equilibrium in the market. It should not be confused with cases where credit is simply ""too expensive"" for some borrowers, that is, situations where the interest rate is deemed too high. On the contrary, the borrower would like to acquire the funds at the current rates, and the imperfection refers to the absence of equilibrium in spite of willing borrowers. In other words, at the prevailing market interest rate, demand exceeds supply, but lenders are not willing to either loan more funds, or raise the interest rate charged, as they are already maximising profits.