Inefficient Regulation: Mortgages versus Total Credit

Using Bankruptcy to Reduce Foreclosures: Does Strip-down of Mortgages Affect the Supply of Mortgage Credit?

We assess the credit market impact of allowing mortgage “strip-down” as a foreclosureprevention measure, where strip-down reduces the principal of underwater residential mortgages to the current market value of the property for homeowners in Chapter 13 bankruptcy. Our identification is provided by a series of U.S. court decisions that introduced strip-down in parts of the U.S. and a Supreme Cou...

Laying off Credit Risk: Loan Sales versus Credit Default Swaps∗

After making a loan, a bank finds out if the loan needs contract enforcement (“monitoring”); it also decides whether to lay off credit risk in order to release costly capital. A bank can lay off credit risk by either selling the loan or by buying insurance through a credit default swap (CDS). With a CDS, the originating bank retains the loan’s control rights but no longer has an incentive to mo...

Trade Credit versus Bank Credit during Financial Crises

A Treatise on Mortgages

Global dynamics of radiatively inefficient accretion flows: advection versus convection

We obtain global solutions of radiatively inefficiently accretion flows around black holes. Whether and where convection develops in a flow are self-consistently determined with the mixing-length theory. The solutions can be divided into three types according to the strength of normal viscosity. Type I solution corresponds to large viscosity parameter α>∼ 0.1, which is purely advectiondominated...