112 posts on "Credit"
September 6, 2017
What Drives International Bank Credit?
A major question facing policymakers is how to deal with slumps in bank credit.
Posted at 7:00 am in Bank Capital, Banks, Credit, Crisis, Financial Markets, International Economics | Permalink
August 23, 2017
At the New York Fed: The Appropriate Government Role in U.S. Mortgage Markets
While the U.S. mortgage finance system was at the center of the recent financial crisis, it remains largely untouched by legislative reforms. At the center of these conversations are Fannie Mae and Freddie Mac—both of which were placed into federal conservatorship in September 2008.
August 15, 2017
Just Released: More Credit Cards, Higher Limits, and . . . an Uptick in Delinquency
Today the New York Fed’s Center for Microeconomic Data released its Quarterly Report on Household Debt and Credit for the second quarter of 2017.
May 17, 2017
Household Borrowing in Historical Perspective
Today, the New York Fed’s Center for Microeconomic Data released its Quarterly Report on Household Debt and Credit for the first quarter of 2017.
May 15, 2017
Do Credit Markets Watch the Waving Flag of Bankruptcy?
Paul Goldsmith-Pinkham explores how the lifting of bankruptcy flags affects borrowers’ credit scores and credit outcomes.
April 3, 2017
At the N.Y. Fed: Press Briefing on Household Borrowing with Close‑Up on Student Debt
An examination of recent developments in household borrowing was the focus of a press briefing held this morning at the New York Fed.
March 27, 2017
Being Up Front about the FHA’s Up‑Front Mortgage Insurance Premiums
The Federal Housing Administration (FHA) played a significant role in maintaining mortgage credit availability following the onset of the subprime mortgage crisis and through the Great Recession.
March 1, 2017
When Debts Compete, Which Wins?
When faced with financial hardship, borrowers might choose to repay some debts while falling behind on others—potentially going into default.
February 15, 2017
Houses as ATMs No Longer
Housing equity is the primary form of collateral that households use for borrowing. This makes it a potentially important source of consumption funding, especially for younger households. In a previous post we showed that owner’s equity in residential real estate has finally, thanks to increasing home prices, rebounded to and essentially re-attained its 2005 peak level. Yet in spite of a gain of more than $7 trillion in housing equity since 2012, so far homeowners haven’t been tapping this equity at anything like the pace we witnessed during the housing boom that ended in 2006. In this post, we analyze the changes in equity withdrawal.
October 5, 2016
Why Did the Recent Oil Price Declines Affect Bond Prices of Non‑Energy Companies?
Oil prices plunged 65 percent between July 2014 and December of the following year. During this period, the yield spread—the yield of a corporate bond minus the yield of a Treasury bond of the same maturity—of energy companies shot up, indicating increased credit risk. Surprisingly, the yield spread of non‑energy firms also rose even though many non‑energy firms might be expected to benefit from lower energy‑related costs. In this blog post, we examine this counterintuitive result. We find evidence of a liquidity spillover, whereby the bonds of more liquid non‑energy firms had to be sold to satisfy investors who withdrew from bond funds in response to falling energy prices.
Posted at 7:00 am in Corporate Finance, Credit, Financial Markets, Inflation, Liquidity, Treasury, Unemployment | Permalink
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