Topic: Debt
Why Do Banks With Little Skin in the Game Still Monitor Borrowers?
Tax policy change triggers an incentive for lenders to be more aggressive
What Makes a True Financial Crisis?
Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown
What Drives LBO Fever? More Than Just Cheap Loans
Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts
Treasury Securities Are Actually Cheap Sometimes
They don’t trade at an absolute equal to intrinsic value, despite their image as the world’s investment bedrock
The Strange Case of the Missing Stock Market Return
Investors in leveraged companies take on extra risk, but research indicates they see no offsetting return
The Debt Market’s Indirect Antidote to ESG Greenwashing
Loans that include a sweetener or penalty tied to ESG performance seem to induce more honest reporting
Some Homeowners Pay Their Underwater Mortgages Until the Government Offers a Better Option
Federal loan modification program led borrowers to default
Shaming of Tax Delinquents Works
34,334 letters were sent to test how sensitive those owing back taxes are to neighbors’ knowledge of the debts
Sensitivity to Debt Type Predicts Financial Health
Research reveals that those wary of payday loans tend to manage their finances better
Quantitative Easing Kept the Foreclosure Crisis from Being Even Worse
The Fed’s gambit didn’t trigger a home-price recovery, but research shows it reduced subprime foreclosure risk
One European Country Defaults: How Hard-Hit Is the Euro?
A predictive model employs credit default swaps across currencies
Municipal Pension Crisis Made Worse by Democrats in Close Elections
Sixty years of data suggest retirement obligations rise after Democrats scrape into office
Modern Monetary Theory: Fiasco in Latin America, Option in U.S.?
The populist model, embraced by some on the American left, resembles policy that helped torpedo some smaller economies
Medical Debt in Collection Estimated at $140 Billion
Poorer residents of states refusing to expand Medicaid hit hardest
Less Leveraged Than the Competition: Ready to Snag Distressed Assets in a Recession
When bad times hit, highly indebted companies often have to sell operations and equipment at fire-sale prices
Lending to Startups: Not as Risky as You’d Think
Entrepreneurs borrow between equity funding rounds with a strong record of repaying debts