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Equilibrium with limited-recourse collateralized loans
- Source :
- ECONOMIC THEORY, Artículos CONICYT, CONICYT Chile, instacron:CONICYT
- Publication Year :
- 2010
-
Abstract
- We address a general equilibrium model with limited-recourse collateralized loans and securitization of debts. Each borrower is required to pledge physical collateral, and bankruptcy is filed against him if claims are not fully honored. Moreover, agents have a positive amount of wealth exempt from garnishment and, for at least a fraction of them, commodities used as collateral are desirable. In this context, equilibrium exists for any continuous garnishment rule and multiple types of reimbursement mechanisms.
- Subjects :
- Secondary mortgage market
Economics and Econometrics
Collateralized loan obligation
Actuarial science
General equilibrium theory
Collateral
Bankruptcy
Collateralized debt obligation
jel:D52
Economics
Context (language use)
Securitization
Collateralized assets
Bankruptcy, Limited-recourse loans
Equilibrium existence
Subjects
Details
- Database :
- OpenAIRE
- Journal :
- ECONOMIC THEORY, Artículos CONICYT, CONICYT Chile, instacron:CONICYT
- Accession number :
- edsair.doi.dedup.....6a4bc87fff564a831ed6afb318da8b6d