摘要
This paper studies how monetary easing provides incentives for banks to take risk and issue mortgage-backed securities (MBS) and, because MBS have the "lemon" property, why MBS buyers are willing to purchase high-risk securities at high prices. Banks need equity to attract deposits. Monetary easing reduces this need, and banks leverage up and reduce their monitoring efforts. The internal need for liquidity and risk sharing motivates banks to issue MBS. Security buyers understand the moral hazard problem that banks face but are willing to purchase bank securities at high prices because monetary easing would also reduce their cost of funds.
源语言 | 英语 |
---|---|
页(从-至) | 1333-1344 |
期刊 | International Journal of Finance Economics |
卷 | 241 |
期 | 3 |
DOI | |
出版状态 | 已出版 - 2019 |
Corresponding author email
jiarui.zhang@nottingham.edu.cnProject sponsor
其他Project name
China Europe International Business School Faculty Research GrantProject No.
n/a关键词
- monetary policy
- mortgage-backed securities
- risk taking
成果物的来源
- ABDC-B
- Scopus
- SSCI
指纹
探究 'Securitization as a response to monetary policy' 的科研主题。它们共同构成独一无二的指纹。引用此
Zhang, J., & Xu, X. (2019). Securitization as a response to monetary policy. International Journal of Finance Economics, 241(3), 1333-1344. https://doi.org/10.1002/ijfe.1721