Special Report on
Netting, financial contracts, and banks
Netting, financial contracts, and banks - Trends
Latest Trending Story:
In the financial contract literature collateral has been identified as serving as a screening device and sorting mechanism (Bester, 1985; Berger and Udell, 1990). The practical significance of collateral is recognized in recent studies on financial contracts in securing repayments, which put collateral as a primarily important factor in determining external financing and investment (Bernanke and Gertler, 1989; Kiyotaki and Moore, 1997; Chen, 2001a). In particular, Kiyotaki and Moore (1997) investigate exogenous shocks’ transmission mechanism of collateral channel through the interaction of credit constraints and the value of ...
The Bankruptcy Code contains provisions for close-out netting of financial contracts. Explaining these provisions entirely would make for a long and boring post, but suffice it to say that for certain types of financial contracts, e.g. , repos, securities contracts, forward contracts, and swaps, there is an exception from the automatic stay of the Code. This means, with some exceptions, that counterparties to a institution that has filed for bankruptcy are permitted to net and liquidate these contracts with the failed institution immediately. This is an exception to the ... Read More
SURVEY RESULTS FOR
NETTING, FINANCIAL CONTRACTS, AND BANKS
Asking the Right Questions: An Introduction to the Centre for Micro Finance
Davos Annual Meeting 2010 - Dodging the Double Dip?