We analyze whether bond investors price tail risk exposures of financial institutions using a comprehensive sample of bond issuances by U.S. financial institutions. Although primary bond yield spreads increase with an institutions' own tail risk (expected shortfall), systematic tail risk...

Using comprehensive credit bureau data, we document that consumers who borrow from marketplace lending (MPL) platforms have lower credit scores and higher default rates in the long run relative to observably similar applicants for bank loans. This underperformance of MPL borrowers is more...

Using comprehensive credit card--borrower--bank matched data of approximately 500 million credit cards in the U.S., we analyze how a sharp unexpected decline in banks' short-term wholesale funding in 2008 affected their consumers. We decompose credit supply and demand effects using the sudden...

We analyze how Credit Default Swaps (CDS) affect bank incentives and borrower outcomes in renegotiations after covenant violations. Using a regression-discontinuity design and within lender-borrower variation, we find that CDS firms maintain investment after control rights shift to the creditor,...

We find that a firm's stock price reaction to its credit rating downgrade announcement is muted by 44--52% when credit default swaps (CDSs) trade on its debt. We explore the role of the CDS markets in providing information ex ante and relieving financing frictions ex post for downgraded firms....

We examine the effect of distressed property rehabilitations on neighboring property prices using a recently developed nonparametric method that accounts for very local confounding house price trends. We find that house prices around a rehabilitated property increase between 2.3 and 4.0...

I show causal evidence that regulators are averse to traveling long distances to supervise distant banks, indicating regulator moral hazard. Further, by exploiting exogenous distance-based variation in the scope and frequency of regulatory oversight, I show that regulatory oversight increases...

We show that profit-seeking institutional investors can provide valuable liquidity and spur the recovery of distressed housing markets. Using a quasi-natural experiment wherein investors purchased pre-packaged distressed home portfolios from the government-sponsored enterprises, we find that...

Non-bank mortgage originators, which operate through the originate-to-distribute (OTD) model, account for more than half of all the mortgage origination in the U.S. However, less is known about which factors drive the quality and quantity of mortgage originations through non-banks. I show that...