Informational Efficiency of Credit Default Swap and Stock Markets: The Impact of Credit Rating Announcements This Paper analyses the response of stock and credit default swap (CDS) markets to rating announcements by the three major rating agencies during 2000-2. Applying event study methodology, we examine whether and how strongly these markets respond to rating announcements in terms of abnorm...

We examine what are common factors that determine systematic credit risk and estimate and interpret the common risk factors. We also compare the contributions of common factors in explaining the changes of credit default swap (CDS) spreads during the pre-crisis, crisis and post-crisis period. Based on the testing result from the common principal components model, this study finds that the eigen...

Soft-products are intangible products that can be consumed without shipment, such as software, music and calling cards (calling time). The demand for soft-products on the Internet has been increasing for the past few years. At the same time, fraudulent credit card transactions have also increased. Compared to tangible products, fraudulent credit card transactions on soft-products are easier to ...

In this paper, we examine how county unemployment rates affect consumers’ delinquency and bankruptcy behavior by focusing on the credit card market. In particular, after controlling for credit supply and shocks like divorce and health coverage we investigate whether consumer propensity for delinquency and bankruptcy changes with respect to the macroeconomic fluctuations across counties. Our res...

Credit Unions have been exposed to a challenging economic environment over the past several years. The turmoil has been marked by numerous failures and consolidations within the Credit Union industry, coupled with increased regulatory scrutiny. However, some Credit Unions have fared better than others. Variation in the performance of Credit Unions, each exposed to a relatively similar economic ...

Research Brief Deeply embedded in the credit union tradition is an ongoing search for better ways to understand and serve credit union members. Open inquiry, the free flow of ideas, and debate are essential parts of the true democratic process. The Filene Research Institute is a 501(c)(3) not-for-profit research organization dedicated to scientific and thoughtful analysis about issues affecting...

Article history: Received 16 June 2014 Received in revised form 24 September 2014 Accepted 2 October 2014 Available online 13 October 2014 I study the impact of Lehman Brothers' bankruptcy and resultant inability to honor its obligations as a lender under committed credit lines. Firms that lost access to a credit line committed by Lehman Brothers experienced abnormal stock returns of−3%, on ave...

The main objective of the study is to assess the impact of micro-credit on poverty reduction . The study was conducted among recipients of microcredit provided by both Grameen Bank and the BRDB in Manikganj Sadar Upazila of Manikganj district and Sagalnaiya Upazila of Feni district. The study reveals that Grameen Bank and BRDB covered higher proportion of landless households compared to control...