Liquidity sentiments

V Asriyan, W Fuchs, B Green - American Economic Review, 2019 - aeaweb.org
We develop a rational theory of liquidity sentiments in which the market outcome in any
given period depends on agents' expectations about market conditions in future periods. Our …

Sowing the seeds of financial crises: Endogenous asset creation and adverse selection

N Caramp - Review of Economic Studies, 2024 - academic.oup.com
What sows the seeds of financial crises, and what policies can help avoid them? I model the
interaction between the ex-ante production of assets and ex-post adverse selection in …

Savings gluts and financial fragility

P Bolton, T Santos… - The Review of Financial …, 2021 - academic.oup.com
We propose an incentive-based theory of how a savings glut produces financial fragility.
Originators must be incentivized to produce high-quality assets. Assets are distributed to …

The anatomy of financial vulnerabilities and banking crises

SJ Lee, KE Posenau, V Stebunovs - Journal of Banking & Finance, 2020 - Elsevier
We extend the framework of Aikman et al.(2017) that maps vulnerabilities in the US financial
system to a broader set of financial vulnerabilities in 27 advanced and emerging economies …

The paradox of safe asset creation

A Segura, A Villacorta - Journal of Economic Theory, 2023 - Elsevier
Safe asset demand increases loan risk. This arises in a competitive model in which
securitization vehicles create safe assets by pooling loan payoffs purchased from loan …

Investment externalities in models of fire sales

P Kurlat - Journal of Monetary Economics, 2021 - Elsevier
Two alternative models of fire sales that yield the same aggregate predictions have different
normative implications. If fire sales result from marginal misallocation, a pecuniary …

[PDF][PDF] How i learned to stop worrying and love fire sales

P Kurlat - 2018 - nber.org
In canonical models with financial constraints, the possibility of fire sales creates a pecuniary
externality that results in ex-ante overinvestment. I show that this result is sensitive to the …

[PDF][PDF] Bank deregulation and the rise of institutional lending

D Neuhann, F Saidi - University of Texas at Austin Working Paper, 2016 - farzadsaidi.com
We study the determinants of increased participation of non-bank financial intermediaries in
the market for syndicated loans prior to the 2008 financial crisis. Institutional investors who …

Security design in non-exclusive markets with asymmetric information

V Asriyan, V Vanasco - Review of Economic Studies, 2024 - academic.oup.com
We study the problem of a seller (eg a bank) who is privately informed about the quality of
her asset and wants to exploit gains from trade with uninformed buyers (eg investors) by …

Asset quality cycles

M Fukui - Journal of Monetary Economics, 2018 - Elsevier
Systemic risk builds up during booms in an economy featuring asymmetric information in
asset markets, where investors' hidden effort choices endogenously determine asset quality …