Matches in SemOpenAlex for { <https://semopenalex.org/work/W2203224586> ?p ?o ?g. }
Showing items 1 to 89 of
89
with 100 items per page.
- W2203224586 abstract "Toxic mortgage related assets in bank portfolios have tested the pervasive free market wisdom that markets can effectively discipline the risk taking behavior of financial firms. In the buildup to the current crises, banks over-leveraged themselves by investing in risky mortgage securities. In an efficient and perfectly informed market investors punish firms for outsized risk taking, however when the assets in question are opaque, hard to price, and new it is difficult for investors and bank regulators alike to unveil the true risk inherent in management actions. Subordinated debt can act as an effective tool for market discipline of US banks because the debt falls outside the protection provided by regulators, since it is subordinate to deposits and outside the deposit insurance safety net. The role of subordinated debt in achieving market discipline is twofold: first, by demonstrating its spread over US treasuries of similar maturities, subordinated debt reveals the market evaluation of the riskiness of a particular bank. Second, subordinated debt issuance is thought to fulfill a preventive role such that banks that issue subordinated risks are less likely to engage in riskier investment precisely due to the fact that they face a higher level of investor scrutiny. The purpose of paper is to test the effectiveness of subordinated debt holders in fulfilling these two roles. Our paper updates the literature on the market disciplining mechanism of subordinated bond spreads by examining the role of underlying mortgage assets in the pricing of subordinated bonds by investors. Our preliminary results indicate that investors did indeed discipline banks that held or securitized high risk mortgage pools by requiring higher yields on subordinated debt." @default.
- W2203224586 created "2016-06-24" @default.
- W2203224586 creator A5007025365 @default.
- W2203224586 creator A5025973678 @default.
- W2203224586 creator A5033849617 @default.
- W2203224586 date "2010-01-01" @default.
- W2203224586 modified "2023-09-26" @default.
- W2203224586 title "Is the Bond Market a Reliable Partner in the Regulation of Banks? An Examination of Subordinated Debt and the Pricing of Residential Mortgage Risk During the Financial Crises" @default.
- W2203224586 cites W1506824384 @default.
- W2203224586 cites W1546758628 @default.
- W2203224586 cites W2017826184 @default.
- W2203224586 cites W2020232147 @default.
- W2203224586 cites W2112339601 @default.
- W2203224586 cites W2130184489 @default.
- W2203224586 cites W2150140521 @default.
- W2203224586 cites W2153101019 @default.
- W2203224586 cites W3023883240 @default.
- W2203224586 cites W3122933999 @default.
- W2203224586 cites W3123890460 @default.
- W2203224586 cites W3123996155 @default.
- W2203224586 cites W3125948922 @default.
- W2203224586 doi "https://doi.org/10.2139/ssrn.1543926" @default.
- W2203224586 hasPublicationYear "2010" @default.
- W2203224586 type Work @default.
- W2203224586 sameAs 2203224586 @default.
- W2203224586 citedByCount "0" @default.
- W2203224586 crossrefType "journal-article" @default.
- W2203224586 hasAuthorship W2203224586A5007025365 @default.
- W2203224586 hasAuthorship W2203224586A5025973678 @default.
- W2203224586 hasAuthorship W2203224586A5033849617 @default.
- W2203224586 hasConcept C10138342 @default.
- W2203224586 hasConcept C120527767 @default.
- W2203224586 hasConcept C144133560 @default.
- W2203224586 hasConcept C15241564 @default.
- W2203224586 hasConcept C162324750 @default.
- W2203224586 hasConcept C17744445 @default.
- W2203224586 hasConcept C197142791 @default.
- W2203224586 hasConcept C199539241 @default.
- W2203224586 hasConcept C202189257 @default.
- W2203224586 hasConcept C22270272 @default.
- W2203224586 hasConcept C2776050585 @default.
- W2203224586 hasConcept C2781251770 @default.
- W2203224586 hasConcept C40566830 @default.
- W2203224586 hasConcept C556758197 @default.
- W2203224586 hasConcept C69738904 @default.
- W2203224586 hasConcept C73283319 @default.
- W2203224586 hasConceptScore W2203224586C10138342 @default.
- W2203224586 hasConceptScore W2203224586C120527767 @default.
- W2203224586 hasConceptScore W2203224586C144133560 @default.
- W2203224586 hasConceptScore W2203224586C15241564 @default.
- W2203224586 hasConceptScore W2203224586C162324750 @default.
- W2203224586 hasConceptScore W2203224586C17744445 @default.
- W2203224586 hasConceptScore W2203224586C197142791 @default.
- W2203224586 hasConceptScore W2203224586C199539241 @default.
- W2203224586 hasConceptScore W2203224586C202189257 @default.
- W2203224586 hasConceptScore W2203224586C22270272 @default.
- W2203224586 hasConceptScore W2203224586C2776050585 @default.
- W2203224586 hasConceptScore W2203224586C2781251770 @default.
- W2203224586 hasConceptScore W2203224586C40566830 @default.
- W2203224586 hasConceptScore W2203224586C556758197 @default.
- W2203224586 hasConceptScore W2203224586C69738904 @default.
- W2203224586 hasConceptScore W2203224586C73283319 @default.
- W2203224586 hasLocation W22032245861 @default.
- W2203224586 hasOpenAccess W2203224586 @default.
- W2203224586 hasPrimaryLocation W22032245861 @default.
- W2203224586 hasRelatedWork W1541518451 @default.
- W2203224586 hasRelatedWork W1550998719 @default.
- W2203224586 hasRelatedWork W1895554245 @default.
- W2203224586 hasRelatedWork W1902601690 @default.
- W2203224586 hasRelatedWork W2041459297 @default.
- W2203224586 hasRelatedWork W2065718267 @default.
- W2203224586 hasRelatedWork W2120224767 @default.
- W2203224586 hasRelatedWork W2130184489 @default.
- W2203224586 hasRelatedWork W2132862309 @default.
- W2203224586 hasRelatedWork W2209679487 @default.
- W2203224586 hasRelatedWork W2460033921 @default.
- W2203224586 hasRelatedWork W2480685412 @default.
- W2203224586 hasRelatedWork W3091655150 @default.
- W2203224586 hasRelatedWork W3121584928 @default.
- W2203224586 hasRelatedWork W3122710337 @default.
- W2203224586 hasRelatedWork W3122746284 @default.
- W2203224586 hasRelatedWork W3123245944 @default.
- W2203224586 hasRelatedWork W3124934917 @default.
- W2203224586 hasRelatedWork W3125526999 @default.
- W2203224586 hasRelatedWork W3125691292 @default.
- W2203224586 isParatext "false" @default.
- W2203224586 isRetracted "false" @default.
- W2203224586 magId "2203224586" @default.
- W2203224586 workType "article" @default.