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Financing as a Supply Chain: The Capital Structure of Banks and Borrowers

Gornall, William; Strebulaev, Ilya A. - National Bureau of Economic Research (NBER) - 2013

internalize the systematic risk costs they impose on their lenders. Because risk assessment techniques from the Basel II framework … leverage, firm leverage, and fragility. Deposit insurance and the expectation of government bailouts lead not only to risk … taking by banks, but increased risk taking by firms. Capital regulation lowers bank leverage but can lead to compensating …

Persistent link: https://www.econbiz.de/10010711816

Credit Default Swaps and the Credit Crisis

Stulz, René M. - National Bureau of Economic Research (NBER) - 2009

contracts involving counterparty risk and that they facilitate speculation involving negative views of a firm's financial …

Persistent link: https://www.econbiz.de/10008634652

Bank Capital and Dividend Externalities

Acharya, Viral V.; Le, Hanh; Shin, Hyun Song - National Bureau of Economic Research (NBER) - 2013

. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …

Persistent link: https://www.econbiz.de/10010796717

Dividends and Bank Capital in the Financial Crisis of 2007-2009

Acharya, Viral V.; Gujral, Irvind; Kulkarni, Nirupama; … - National Bureau of Economic Research (NBER) - 2011

The headline numbers appear to show that even as banks and financial intermediaries suffered large credit losses in the financial crisis of 2007-09, they raised substantial amounts of new capital, both from private investors and through government-funded capital injections. However, on closer...

Persistent link: https://www.econbiz.de/10008868166

Hedge Fund Leverage

Ang, Andrew; Gorovyy, Sergiy; Inwegen, Gregory B. van - National Bureau of Economic Research (NBER) - 2011

We investigate the leverage of hedge funds in the time series and cross section. Hedge fund leverage is counter-cyclical to the leverage of listed financial intermediaries and decreases prior to the start of the financial crisis in mid-2007. Hedge fund leverage is lowest in early 2009 when the...

Persistent link: https://www.econbiz.de/10008839465

Cream Skimming in Financial Markets

Bolton, Patrick; Scheinkman, Jose; Santos, Tano - National Bureau of Economic Research (NBER) - 2011

We propose an equilibrium occupational choice model, where agents can choose to work in the real sector (become entrepreneurs) or to become informed dealers in financial markets. Agents incur costs to become informed dealers and develop skills for valuing assets up for trade. The financial...

Persistent link: https://www.econbiz.de/10008839463

Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse

Weidenmier, Marc; Bernstein, Asaf; Hughson, Eric - National Bureau of Economic Research (NBER) - 2014

Heightened counterparty risk during the recent financial crisis has raised questions about the role clearinghouses play … in global financial stability. Empirical identification of the effect of centralized clearing on counterparty risk is … after the establishment of clearing. We also show that at least ½ of the average reduction in counterparty risk on the NYSE …

Persistent link: https://www.econbiz.de/10010969403

Stressed not Frozen: The Fed Funds Market in the Financial Crisis

Kovner, Anna; Schoar, Antoinette; Afonso, Gara - National Bureau of Economic Research (NBER) - 2010

This paper examines the impact of the financial crisis of 2008 on the federal funds market, specifically the bankruptcy of Lehman Brothers. Rather than a complete collapse of lending in the presence of a market wide shock, we see that banks become more restrictive in which counterparties they...

Persistent link: https://www.econbiz.de/10008631077

What Happened To The Quants In August 2007?: Evidence from Factors and Transactions Data

Lo, Andrew W.; Khandani, Amir E. - National Bureau of Economic Research (NBER) - 2008

risk capital starting August 8th. Our simulations point to two unwinds---a mini-unwind on August 1st starting at 10:45am …

Persistent link: https://www.econbiz.de/10005575396

Managing Public Investment Funds: Best Practices and New Challenges

Mitchell, Olivia; Piggott, John; Kumru, Cagri - National Bureau of Economic Research (NBER) - 2008

Large publicly-held pools of assets are playing an increasingly prominent role in the global investment arena. We compare three distinct forms of such public funds, namely foreign exchange reserve funds, sovereign wealth funds, and public pension funds, to highlight their differences and...

Persistent link: https://www.econbiz.de/10005579916