The deterioration in credit quality of General Motors (GM) & Ford to junk status in the spring of 2005 caused a wide-spread sell-off in their corporate bonds. Using a novel dataset, we document that this sell-off appears to have generated significant liquidity risk for marketmakers, as evidenced by a significant imbalance in their quotes towards sales. We find that simultaneously there was a su...

• Observe that land sales markets between large landlords and small peasants are thin/segmented because: 1. Land is overpriced for small buyers relative to value in use (borrowing capacity): the price of land internalizes tax advantages, expected speculative gains, wealth sheltering, social status effects, and collateral value. 2. Smallholders do not have access to long term credit. 3. Even if ...

In this study it has been initiated to find out the credit strength and financial performance of cement industries in Bangladesh through investigating the financial report for the period from 2007 to 2011. Financial ratios are employed to measure the Liquidity (Working capital to Total Assets), Profitability (Retained Earnings to Total Assets), Efficiency (Earnings before Interest and Taxes to ...

We study the difference between loan sales and credit default swaps. A bank lends money to an entrepreneur to undertake a positive NPV project. After the loan has been made, the bank finds out if the project benefits from monitoring and if it should sell the loan to release regulatory capital. A bank can lay off credit risk by either selling the loan or by buying credit insurance through a cred...

In the aftermath of the Asian financial crisis in Korea, the credit guarantee policy was used as an instrument by the government to support small and medium enterprises (SMEs). However, the effect of the credit guarantee has not been carefully studied and the policy has been criticized for impairing development of innovative private financial sector and for making SMEs highly dependent on gover...

This paper explores a reason why retailers pay such large merchant fees to credit card issuers. Credit cards as media of exchange are introduced to a New Monetarist model in which exchange occurs in alternating centralized and decentralized markets. Sellers who exert high (low) effort produce a good with a high (low) probability of being high quality. The quality of the good is revealed only af...

The design of a credit risk measurement model in the monetary and banking system will play an important role in increasing the profitability of banking resources. This article attempts to use two models of Logit and Z Altman to determine and predict the credit risk of facilities provided to legal entities at a private bank in Iran. The variables studied in this research include qualitative vari...

The Sanjaya shop is a that sells various kinds of machines such as pumps, diesel and many more. Sales their PT Andalan Sejahtera Pekanbaru one the companies engaged in sale Spare Parts for Heavy Equipment, Machinery, Vehicles so on. In addition to cash sales, credit sales are also applied. Transaction processing carried out almost every day. managing transaction data, especially transactions, i...

Firms depend heavily on trade credit. In the years 1980-2004 about 60% of all inputs to production were purchased with a delayed payment. This paper provides evidence that trade credit connection plays signi cant role in the growth stability of customers by reducing the propagation of rm-level shocks from suppliers onto their customers. On average, customer experiences about 20% lower disruptio...