Unsecured and Secured Funding

A Stochastic Infinite-horizon Economy with Secured Lending, or Unsecured Lending and Bankruptcy

The fragility of short-term secured funding markets

This paper develops a model of financial institutions that borrow short term and invest in longterm assets that can be traded in frictionless markets. Because these financial intermediaries perform maturity transformation, they are subject to potential runs. We derive distinct liquidity, collateral, and asset liquidation constraints, which determine whether a run can occur as a result of changi...

Competitive Poaching in Unsecured Lending∗

The paper studies the effects of non-exclusivity of credit card contracts on the provision of insurance through the institution of personal bankruptcy. In our model, lenders can continually observe borrower’s time-varying creditworthiness and provide credit to them by undercutting (poaching) the existing lender(s). Contracts are non-exclusive and, to rollover their debt, borrowers may accept mu...

Funding decisions

Funding decision is one of the financial strategic decisions of a corporation. There are also two other finan-cial strategic decisions that a corporation faces, the investment and the dividend decision. This paper de-scribes briefly the investment and the dividend decision, although its main focus is on funding decision. In de-scribing the funding decision the researchers will first explain the...

Describing a problem: rear seatback failure and unsecured cargo.

INTRODUCTION Currently, there is little in the literature regarding the ability of rear seatbacks to act as a protective barrier from cargo in frontal crashes. However, it has been shown that unrestrained rear passengers pose a danger to front seat occupants. The association of rear seatback failures and intrusions with mortality and serious injury were examined. METHODS The Seattle CIREN dat...