Area: Finance
Fed Policy Helped Distressed Homeowners But Wasn’t a Cure-All
Modifications curtailed foreclosures during 2008-09 crisis, but borrowers remained at high risk of delinquency
Equity-Rich Homeowners Overpay for Their Next House
Less diligent as shoppers, such buyers help drive up home prices
Employee or Capitalist? Equity Compensation Merges the Two
Labor’s losses to capital, much studied, aren’t quite as grim when stock and options are tabulated
Discontinued Car Models, Often Sold to Lower-Income People, Carry a Magnified Risk of Collateral Shortfall
After the repo: Borrowers’ post-default payments account for 27% of lender recoveries
Disclosure of Climate Risk Helps Stocks Trade More Smoothly
Dropping facts into a polarized investor pool reduces the impact of ideology and leads to broader ownership
Did Bank Capital Rules Make Credit Card Borrowing More Expensive?
Though defaults are low, rates on credit card loan-backed notes are high
Dealers Might Not Profit from Soaring Used-Car Prices
Lenders and private-party sellers constrain a seeming windfall
Credit Scores, Used to Predict Repayment, Can Restrain Economic Recovery
Rigid adherence to scoring systems can reduce consumer spending when it’s most needed
COVID-19-Induced Eviction Moratoria Reduced Hunger and Anxiety
Housing guaranteed, rent payments went toward food
Could Tech Giants Be Making Our Economy Less Innovative?
With a business model built on fewer employees, their dominance saps dynamism.
Could Costly Housing Bring Down Superstar Cities?
Stuart Gabriel’s research shows how a vibrant economic hub loses essential residents
Consumer Spending and Jobless Data: a Peculiar Threshold
A 12-month high in local unemployment triggers savings behavior
Clues to the Market When Mortgage Originators Delay Securitization
With high-quality borrowers hard to judge from afar, Alt-A market offers quiet signal on creditworthiness
Chinese Investors Learn about Derivatives the Hard Way
An analysis of warrant trading reveals individuals’ poor grasp of complex securities
CD Withdrawal Penalties: Often More Than Worth the Risk
Banks know you won’t do the math: Even after a penalty for early withdrawal, the longer-term CD often nets out to a better deal
Cashless Payments: Faster Transactions, Easier Borrowing and Increased Household Income
System provides digital record of payments for India’s vast self-employed ranks, satisfying lenders, and raising the likelihood of starting a business