Collateralized assets and asymmetric information
نویسندگان
چکیده
منابع مشابه
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I study how quantities of safe bonds affect asset prices and lending volumes in financial markets. In a quantitative model, heterogeneous agents trade securities of different maturity and risk exposure. Risk-tolerant investors issue collateralized bonds to obtain leverage and to insure the risk-averse. Despite the presence of higher return assets, the most risk-tolerant hold long-maturity safe ...
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In early September of 2008, the adverse consequences of the subprime crisis spread and deepened at an alarming pace. On September 7, Fannie Mae and Freddie Mac, two cornerstones in the securitization of mortgages, were placed under conservatorship by their regulator (the Federal Housing Financial Agency). Half of the remaining U.S. investment banks ceased to exist on September 15, as Merrill Ly...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2008
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2007.06.003