Credit Rationing by Loan Size in Commercial Loan Markets
... owner gets from various combinations of consumption in the two time periods. We assume that the owner’s utility function is twice differentiable, strictly increasing and strictly concave. These mathematical properties imply that the owner prefers more consumption to less and prefers relatively equal ...
... owner gets from various combinations of consumption in the two time periods. We assume that the owner’s utility function is twice differentiable, strictly increasing and strictly concave. These mathematical properties imply that the owner prefers more consumption to less and prefers relatively equal ...
A spot market model for pricing derivatives in
... of high demand for the first 6 months of a year. Since the utility does not know exactly when the load will be high (as it depends on uncertain factors, such as weather conditions), it signs an optional contract. One possibility is, that the utility simply buys a portfolio of call options giving the ...
... of high demand for the first 6 months of a year. Since the utility does not know exactly when the load will be high (as it depends on uncertain factors, such as weather conditions), it signs an optional contract. One possibility is, that the utility simply buys a portfolio of call options giving the ...
Monetary Policy and Speculative Stock Markets
... When suspecting such a feedback between financial markets and real aggregates, two postulates are implied. The first postulate is the existence of a mutual link between asset prices and real activity, i.e. that causality might run in both directions. Recent economic literature stresses the relevance ...
... When suspecting such a feedback between financial markets and real aggregates, two postulates are implied. The first postulate is the existence of a mutual link between asset prices and real activity, i.e. that causality might run in both directions. Recent economic literature stresses the relevance ...
A Policy Model to Analyze Macroprudential Regulations and Monetary Policy 2014-6
... e¤ectiveness of di¤erent policy tools in reducing household indebtedness in Canada. This issue is of particular relevance for the Canadian economy since, with the policy rate low for a long time as a result of global external headwinds, Canada’s household debt-to-income ratio has reached record high ...
... e¤ectiveness of di¤erent policy tools in reducing household indebtedness in Canada. This issue is of particular relevance for the Canadian economy since, with the policy rate low for a long time as a result of global external headwinds, Canada’s household debt-to-income ratio has reached record high ...
Consumer Loans in Cambodia - Munich Personal RePEc Archive
... household’s welfare, the development of consumer loans help relax the constraint of households by allowing them to frontload some of their consumptions on the expectation of higher income flow in the future. However, at the same time, loan expansion to households implies increasing household indebte ...
... household’s welfare, the development of consumer loans help relax the constraint of households by allowing them to frontload some of their consumptions on the expectation of higher income flow in the future. However, at the same time, loan expansion to households implies increasing household indebte ...
rental housing demand - Harvard Joint Center for Housing Studies
... The recent turmoil in for-sale housing markets and the broader economy has highlighted the many advantages of renting. Since the onset of the Great Recession, unemployment has remained stubbornly high and incomes have fallen, straining household budgets. In this environment, renting offers a flexibl ...
... The recent turmoil in for-sale housing markets and the broader economy has highlighted the many advantages of renting. Since the onset of the Great Recession, unemployment has remained stubbornly high and incomes have fallen, straining household budgets. In this environment, renting offers a flexibl ...
Another Look at the Inflation-Target Horizon
... Et denotes expectations made in period t.8 A simple rule was used because it is more likely to be robust across models than a more complex rule optimized for a particular model (Levin, Wieland, and Williams 1999; Armour and Côté 1999–2000; and Côté et al. 2002). The specific rule used here is an inf ...
... Et denotes expectations made in period t.8 A simple rule was used because it is more likely to be robust across models than a more complex rule optimized for a particular model (Levin, Wieland, and Williams 1999; Armour and Côté 1999–2000; and Côté et al. 2002). The specific rule used here is an inf ...
Monetary Policy Statement September 2008 Contents
... for the global economy has deteriorated further in the wake of continued financial market turmoil. In addition, the New Zealand business sector is coming under pressure from both rising costs and falling demand. While domestic activity is likely to pick up late this year as a result of personal tax ...
... for the global economy has deteriorated further in the wake of continued financial market turmoil. In addition, the New Zealand business sector is coming under pressure from both rising costs and falling demand. While domestic activity is likely to pick up late this year as a result of personal tax ...
Thematic Review on mortgage Underwriting and Origination Practices
... housing price growth.6 In the process, lenders in those countries had placed greater emphasis on home valuations than traditional assessments of the borrower’s capacity to repay, and developed new, riskier products that made use of more relaxed product terms, liberal underwriting and increased lendi ...
... housing price growth.6 In the process, lenders in those countries had placed greater emphasis on home valuations than traditional assessments of the borrower’s capacity to repay, and developed new, riskier products that made use of more relaxed product terms, liberal underwriting and increased lendi ...
Macroprudential tools, transmission and modelling
... macroprudential policy. Interestingly, from the literature it is often the sector specific tools that are shown to be most effective, although this may be because of longer experience of their use. This then forms background to our own modelling exercise which is in Section 4. We seek to estimate pa ...
... macroprudential policy. Interestingly, from the literature it is often the sector specific tools that are shown to be most effective, although this may be because of longer experience of their use. This then forms background to our own modelling exercise which is in Section 4. We seek to estimate pa ...
Individual Case Study on Lowe`s Companies, Inc.
... in the state-of-the- art distribution network that keeps Lowe's stores supplied with the products that our customers need. Products will then be quickly loaded as customized orders. Today about 70% of stock product flows through our distribution network, and we are well positioned to achieve our goa ...
... in the state-of-the- art distribution network that keeps Lowe's stores supplied with the products that our customers need. Products will then be quickly loaded as customized orders. Today about 70% of stock product flows through our distribution network, and we are well positioned to achieve our goa ...
Bear Stearns
... Bear Stearns was slow to recover from the 1994 bond market crash, since its fiscal year does not align with the calendar year and decreased earnings from the crash were not reported until mid-1995. The securities industry is so competitive that when employees’ bonuses took a hit from reduced revenue ...
... Bear Stearns was slow to recover from the 1994 bond market crash, since its fiscal year does not align with the calendar year and decreased earnings from the crash were not reported until mid-1995. The securities industry is so competitive that when employees’ bonuses took a hit from reduced revenue ...
International Pricing Strategy: Why Prices Rise and How Prices
... International circumstances and businesses affect both prices of imported goods, and prices of those goods, which could be exported, but are still traded domestically, as long as their prices in the internal market stay sufficiently high. This idea sustains the simplest and wellknown model for inter ...
... International circumstances and businesses affect both prices of imported goods, and prices of those goods, which could be exported, but are still traded domestically, as long as their prices in the internal market stay sufficiently high. This idea sustains the simplest and wellknown model for inter ...
An Analysis of Default Risk in the Home Equity Conversion
... were not collected. One of the primary theoretical determinants of default in the forward mortgage market, negative equity, is not applicable for reverse mortgages. Rather, lack of financial resources, liquidity constraints, and poor financial management are likely more important. Further, the way ...
... were not collected. One of the primary theoretical determinants of default in the forward mortgage market, negative equity, is not applicable for reverse mortgages. Rather, lack of financial resources, liquidity constraints, and poor financial management are likely more important. Further, the way ...
Investment Strategies and Alternative Investments in Insurance and
... It can be seen that most of the monthly returns come from alpha. The model can replicate the monthly return for hedge funds with lower volatility. However, this is based on in-sample regression. Out of sample tests have not been performed ...
... It can be seen that most of the monthly returns come from alpha. The model can replicate the monthly return for hedge funds with lower volatility. However, this is based on in-sample regression. Out of sample tests have not been performed ...
Rate Hike Won`t Hurt Bonds Amid Low Inflation
... Corporate bond yield spreads often are well behaved during the early installments of a series of Fed rate hikes. Because rate hikes ordinarily occur amid above-average business activity and profits growth, the high-yield bond spread shows a decidedly below-trend median of 387 bp for those spans of t ...
... Corporate bond yield spreads often are well behaved during the early installments of a series of Fed rate hikes. Because rate hikes ordinarily occur amid above-average business activity and profits growth, the high-yield bond spread shows a decidedly below-trend median of 387 bp for those spans of t ...
Capital Markets Review
... The price-to-earnings ratio, or P/E, is a common measure of the value of stocks. It shows the relationship between a stock’s price and the underlying company’s earnings (or profits) per share of stock. In essence, it calculates how many dollars you pay for each dollar of a company’s earnings. In ver ...
... The price-to-earnings ratio, or P/E, is a common measure of the value of stocks. It shows the relationship between a stock’s price and the underlying company’s earnings (or profits) per share of stock. In essence, it calculates how many dollars you pay for each dollar of a company’s earnings. In ver ...
United States housing bubble
The United States housing bubble was an economic bubble affecting many parts of the United States housing market in over half of American states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case-Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is—according to general consensus—the primary cause of the 2007–2009 recession in the United States.Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble ""the most significant risk to our economy.""Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but the nation's mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble, with over half going to Fannie Mae and Freddie Mac (both of which are government-sponsored enterprises) as well as the Federal Housing Administration. On December 24, 2009, the Treasury Department made an unprecedented announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years despite acknowledging losses in excess of $400 billion so far. The Treasury has been criticized for encroaching on spending powers that are enumerated for Congress alone by the United States Constitution, and for violating limits imposed by the Housing and Economic Recovery Act of 2008.