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Conference Paper
The opening of new markets for bank assets
Conference Paper
Public policy and the evolution of banking markets
Conference Paper
The paradox of loan sales
Journal Article
Recent trends in commercial bank loan sales
The dollar volume of commercial bank loan sales rose rapidly in the mid-1980s but has declined equally rapidly over the past few years. This article provides insight into these loan sales trends by looking beyond the aggregate data and separately examining the sales activities of the largest loan sellers and those of all other banks.
Conference Paper
Why commercial banks sell loans: an empirical analysis
Conference Paper
The loan asset sales market, what lies ahead?
Working Paper
Managing the risk of loans with basis risk: sell, hedge, or do nothing?
Individual loans contain a bundle of risks including credit risk and interest rate risk. This paper focuses on the general issue of banks? management of these various risks in a model with costly loan monitoring and convex taxes. The results suggest that if the hedge is not subject to basis risk, then hedging dominates a strategy of ?do nothing.? Whether hedging dominates loan sales depends on whether it induces reduced monitoring, the net benefit of monitoring, and the reduced tax burden of eliminating all risk via selling. If the hedge is subject to basis risk, then a ?do nothing? strategy ...