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- All HBS Web (54)
- Faculty Publications (21)
Show Results For
- All HBS Web (54)
- Faculty Publications (21)
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- June 2013
- Article
Are There Too Many Safe Securities? Securitization and the Incentives for Information Production
By: Samuel G. Hanson and Adi Sunderam
We present a model that helps explain several past collapses of securitization markets. Originators issue too many informationally insensitive securities in good times, blunting investor incentives to become informed. The resulting endogenous scarcity of informed...
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Hanson, Samuel G., and Adi Sunderam. "Are There Too Many Safe Securities? Securitization and the Incentives for Information Production." Journal of Financial Economics 108, no. 3 (June 2013): 565–584. (Internet Appendix Here.)
- Article
The Economics of Structured Finance
By: Joshua D. Coval, Jakub W. Jurek and Erik Stafford
This paper investigates the spectacular rise and fall of structured finance. The essence of structured finance activities is the pooling of economic assets like loans, bonds, and mortgages, and the subsequent issuance of a prioritized capital structure of claims, known...
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Keywords:
Financial Crisis;
Asset Management;
Debt Securities;
Investment;
Risk Management;
Behavior
Coval, Joshua D., Jakub W. Jurek, and Erik Stafford. "The Economics of Structured Finance." Journal of Economic Perspectives 23, no. 1 (Winter 2009): 3–25.
- 12 Jun 2018
- First Look
New Research and Ideas, June 12, 2018
their prior knowledge, whereas knowledge recombination is more likely to be pursued by teams comprising inventors from other ethnic backgrounds. Publisher's link: https://pubwww.hbs.edu/faculty/Pages/item.aspx?num=54569 forthcoming American Economic Review: Insights View Details
Keywords:
Dina Gerdeman
- 12 May 2015
- Working Paper Summaries
Financing Payouts
- March 2011
- Article
Institutional Demand Pressure and the Cost of Corporate Loans
By: Victoria Ivashina and Zheng Sun
Between 2001 and 2007, annual institutional funding in highly leveraged loans went up from $32 billion to $426 billion, accounting for nearly 70% of the jump in total syndicated loan issuance over the same period. Did the inflow of institutional funding in the...
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Keywords:
Leveraged Buyouts;
Financial Crisis;
Credit;
Debt Securities;
Financing and Loans;
Interest Rates;
Investment
Ivashina, Victoria, and Zheng Sun. "Institutional Demand Pressure and the Cost of Corporate Loans ." Journal of Financial Economics 99, no. 3 (March 2011): 500–522.
- 12 Jul 2011
- First Look
First Look: July 12
debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the financing costs...
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Carmen Nobel
- 01 Jul 2014
- First Look
First Look: July 1
a mix of both. Wherever clubs fall on this spectrum, having a strategy that recognizes the global importance of stars is critical to long-lasting financial success. August 2013 Journal of Finance A Comparative-Advantage Approach to Government View Details
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Carmen Nobel
- 20 Sep 2016
- First Look
September 20, 2016
excessively countercyclical inflation in addition to the standard inflationary bias. With countercyclical inflation, investors require risk premia on nominal debt, making nominal debt issuance costly for low...
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Sean Silverthorne
- 22 Apr 2014
- First Look
First Look: April 22
and has real investment implications: approximately 75% of the debt issuance funds increased capital expenditures and cash acquisitions. In the cross section, misvaluation affects financially constrained...
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Sean Silverthorne
- 13 Jun 2012
- HBS Case
HBS Cases: A Startup Takes On the Credit Ratings Giants
investment decisions; fund managers employ them when describing the contents and risks of their bond portfolios; market makers use them to set debt prices. In addition, they're part of the regulatory processes of big banks. Given that the...
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- 07 Sep 2011
- First Look
First Look: Sept. 7
hard to quantify in the time-series. While loan issuance falls in recessions, it is not clear if this is due to demand or supply. We address this question by studying firms' substitution between bank debt...
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Keywords:
Sean Silverthorne
- 16 Sep 2014
- First Look
First Look: September 16
August 2012, Molycorp announced it would issue $120 million of equity and $360 million of convertible debt. To facilitate the issuance of convertible debt, the firm entered a "share lending agreement" with Morgan Stanley whereby...
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Sean Silverthorne
- 14 Sep 2010
- First Look
First Look: September 14, 2010
on the loan used to finance the Momentive buyout and allow issuance of senior secured notes. The case is set up from the perspective of a hedge fund that holds a fraction of Momentive's syndicated loan. The case serves as a vehicle for...
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Keywords:
Sean Silverthorne
- 24 Sep 2013
- First Look
First Look: September 24
time series. While loan issuance falls in recessions, it is not clear if this is due to demand or supply. We address this question by studying firms' substitution between bank debt and non-bank View Details
Keywords:
Sean Silverthorne
- 15 Jun 2010
- First Look
First Look: June 15
and tight monetary policy. To illustrate our point, in the last half of 2007, 36% of all debt issues were bank loans. However, relative loan issuance fell to 8% by the first half of 2009, the lowest level in...
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Martha Lagace
- 01 Mar 2016
- First Look
March 1, 2016
credit-market sentiment in year t – 2 also forecasts a change in the composition of external finance: net debt issuance falls in year t, while net equity issuance increases,...
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Keywords:
Sean Silverthorne
- 01 Oct 2013
- First Look
First Look: October 1
recessions, it is not clear if this is due to demand or supply. We address this question by studying firms' substitution between bank debt and non-bank debt (public bonds) using firm-level data. Any firm...
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Keywords:
Sean Silverthorne
- 19 Apr 2016
- First Look
April 19, 2016
three-time increase in cov-lite issuance compared to a previous peak in 2007. We evaluate whether this development can be attributed to market overheating, increased borrower demand for cov-lite loans, or a rise in creditor coordination...
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Sean Silverthorne
- 31 Aug 2009
- Research & Ideas
Why Competition May Not Improve Credit Rating Agencies
In the run-up to the global financial crisis, credit rating agencies gave high marks to such risky financial vehicles as collateralized debt obligations, which few people understood. It has been argued that these ratings misled investors...
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- 24 Jan 2017
- First Look
First Look at New Research: January 24, 2017
net shareholder payouts were offset by net debt issuances and, thus, were effectively recapitalizations rather than firm-shrinking distributions. After excluding marginal debt...
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Keywords:
Sean Silverthorne