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Acharya, Viral V.; Jager, Maximilian; Steffen, Sascha - National Bureau of Economic Research - 2023

Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks' provision of liquidity insurance in the form of credit...

Persistent link: https://www.econbiz.de/10014437040

Central Clearing and Collateral Demand

Duffie, Darrell - 2014

demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers … impact on collateral demand of more widespread initial margin requirements, increased novation of CDS to central clearing …-specialized types, and client clearing. Among other results, we show that system-wide collateral demand is increased significantly by …

Persistent link: https://www.econbiz.de/10012458774

Information-Based Pricing in Specialized Lending

Blickle, Kristian; He, Zhiguo; Huang, Jing; Parlatore, … - National Bureau of Economic Research - 2024

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

Good Booms, Bad Booms

Gorton, Gary - 2016

careful examination of collateral. As this examination is more valuable when collateral backs projects with low productivity …

Persistent link: https://www.econbiz.de/10012456665

The Design of Bank Loan Contracts, Collateral, and Renegotiation

Gorton, Gary - 1993

are not monotonic in borrower type; (4) inefficient liquidation can occur. In renegotiation seniority and collateral are …

Persistent link: https://www.econbiz.de/10012474689

Bankruptcy Exemption of Repo Markets : Too Much Today for Too Little Tomorrow?

Acharya, Viral V.; Anshuman, V. Ravi; Viswanathan, S. - National Bureau of Economic Research - 2024

the cost of ex-post inefficiency when there are adverse aggregate shocks to the fundamental quality of collateral … shocks by engaging in collateral liquidations. Financial arbitrage by less leveraged financial intermediaries equilibrates … returns from acquiring collateral at fire-sale prices and returns from real-sector lending, inducing higher lending rates, a …

Persistent link: https://www.econbiz.de/10014468227

Financial Dampening

Wieland, Johannes F. - 2016

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

Persistent link: https://www.econbiz.de/10012456534

Systemic Credit Freezes in Financial Lending Networks

Acemoglu, Daron - 2020

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential borrowers. Borrowers are subject to shocks that may force them to default on their loans. In contrast to much of the previous literature on financial networks, we focus on how...

Persistent link: https://www.econbiz.de/10012481732

Credit Smoothing

Hundtofte, Sean - 2019

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and …

Persistent link: https://www.econbiz.de/10012480298

Global Liquidity : Drivers, Volatility and Toolkits

Goldberg, Linda S. - National Bureau of Economic Research - 2023

Global liquidity refers to the volumes of financial flows - largely intermediated through global banks and non-bank financial institutions - that can move at relatively high frequencies across borders. The amplitude of responses to global conditions like risk sentiment, discussed in the context...

Persistent link: https://www.econbiz.de/10014322743