Securitization without risk transfer
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TLDR
In this article, asset-backed commercial paper conduits, which experienced a shadow-banking run and played a central role in the early phase of the financial crisis of 2007-2009, were analyzed.About:
This article is published in Journal of Financial Economics.The article was published on 2013-03-01 and is currently open access. It has received 524 citations till now. The article focuses on the topics: Asset-backed commercial paper & Capital requirement.read more
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Deciphering the Liquidity and Credit Crunch 2007-2008
TL;DR: The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy as mentioned in this paper The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies at the same time the stock market capitalization of the major banks declined by more than twice as much.
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Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Expensive
TL;DR: The authors examine the pervasive view that "equity is expensive," which leads to claims that high capital requirements are costly for society and would affect credit markets adversely and find that arguments made to support this view are fallacious, irrelevant to the policy debate, or very weak.
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Running for the Exit? International Bank Lending During a Financial Crisis
Ralph de Haas,Neeltje van Horen +1 more
TL;DR: This article examined how large international banks reduced their cross-border lending after the collapse of Lehman Brothers and found substantial heterogeneity in the extent to which different banks retrenched from the same country.
An Analysis of the Impact of 'Substantially Heightened' Capital Requirements on Large Financial Institutions
TL;DR: In this article, the authors examine the impact of "substantially heightened" capital requirements on large financial institutions, and on their customers, and conclude that the frictions associated with raising new external equity finance are likely to be greater than the ongoing costs of holding equity on the balance sheet, implying that the new requirements should be phased in gradually.
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A Model of Shadow Banking
TL;DR: In this paper, the authors present a new model of shadow banking and securitization in which a financial intermediary can originate or acquire both safe and risky loans, and can finance these loans from its own resources as well as by issuing debt.
References
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Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
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Financial Intermediation and Delegated Monitoring
TL;DR: In this paper, the authors developed a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders, and presented a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary.
Journal ArticleDOI
Deciphering the Liquidity and Credit Crunch 2007-2008
TL;DR: The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy as mentioned in this paper The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies at the same time the stock market capitalization of the major banks declined by more than twice as much.
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