This paper considers the value of a fixed rate mortgage where the borrower has the choice to make early payment. The contract value is formulated in terms of integral equations with the optimal early exercise boundary embedded. A fast and effective algorithm has been established for solving the problem numerically. A novelty quadrature method has been derived to handle the singular integrals. S...

Brazil has adopted price-level indexation of financial contracts to a much greater degree than any other country. Indexation was adopted during the mid-1960s, following a period of extremely high and volatile inflation, in response to virtual stagnation in financial markets and a host of related problems. Although there is considerable controversy over the ex ~nt to which indexation has contrib...

This paper describes a novel methodology of measuring risky and conservative mortgage credit using household survey data for 17 European Union countries the United Kingdom. In addition, we construct time series both types embed them into global vector autoregressive (GVAR) model, so as to study how shocks variables affect domestic output propagate across through cross-border banking exposures. ...