Showing 1 - 10 of 264
For nearly a decade prior to the collapse of structured finance markets in late 2007, securitization by collateralized … whether securitization was associated with risky lending in the corporate loan market by examining the performance of … underperform the rest of the loan portfolio. Overall, we argue that the securitization of corporate loans is fundamentally …
Persistent link: https://www.econbiz.de/10012461891
Existing research on selection in insurance markets focuses on how adverse selection distorts prices and misallocates products across people. This ignores the distributional consequences of who pays the higher prices. In this paper, we show that the distributional incidence depends on the...
Persistent link: https://www.econbiz.de/10014322822
This review article, which was solicited by the Geneva Risk and Insurance Review, surveys work that has been done using an empirical framework for analyzing selection in insurance markets developed by Einav, Finkelstein, and Cullen (2010). We briefly review that framework, and then describe a...
Persistent link: https://www.econbiz.de/10014250164
This paper applies principles of adverse selection to overcome obstacles that prevent the implementation of Pigouvian policies to internalize externalities. Focusing on negative externalities from production (such as pollution), we consider settings in which aggregate emissions are known, but...
Persistent link: https://www.econbiz.de/10013334500
intermediated through arms-length transactions, such as securitization. This paper documents these trends, explores their causes … structural model to explore whether technological improvements in securitization, shifts in saver preferences away from deposits …, and changes in implicit subsidies and costs of bank activities can explain these shifts. Declines in securitization cost …
Persistent link: https://www.econbiz.de/10014486266
We study specialized lending in a credit market competition model with private information. Two banks, equipped with similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank gains an additional advantage through further...
Persistent link: https://www.econbiz.de/10014486246
This paper develops a general equilibrium model to examine the role of information technology when intermediaries facilitate the origination and distribution of assets given information asymmetry. Information technology measures the informativeness of asset-quality signals received by...
Persistent link: https://www.econbiz.de/10014468252
to climate risk may be a drop in the ocean of cash flows. This paper builds a data set of the entire securitization chain …
Persistent link: https://www.econbiz.de/10014512098
securitized mortgages. This paper uses the impact of one such sharp rule, the conforming loan limit, on securitization volumes. We … securitization activity in years following such a billion-dollar disaster. Such increase is larger in neighborhoods for which such a …
Persistent link: https://www.econbiz.de/10012480267
expectancy and a major expansion in securitization and shadow banking activities. We argue they are intimately related. Agents … heavily on intermediaries that use securitization, with riskier but higher returns. A quantitative evaluation of the model … more extensive use of securitization and shadow banking …
Persistent link: https://www.econbiz.de/10012480281