Credit, Securitization and Monetary Policy : Watch Out for Unintended Consequences / Andrea Pescatori, Juan Sole.

Format:

Book

Government document

Author/Creator:

Pescatori, Andrea.

Contributor:

Sole, Juan.

Series:

IMF Working Papers; Working Paper ; No. 2016/076

IMF Working Papers

Language:

English

Subjects (All):

Monetary policy.

Asset-backed financing.

Interest rates.

Physical Description:

1 online resource (22 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2016.

Summary:

We show evidence that interest rate hikes slowdown loan growth but lead intermediation to migrate from banks’ balance sheets to non-banks via increased securitization activity. As such, higher interest rates have the potential for unintended consequences; raising systemic risk rather than lowering it by pushing more intermediation activity to more weakly regulated sectors. In the past, this increased securitization activity was driven primarily byb private-label securitization. On the other hand, the government sponsored entities like Freddie Mac and Fannie Mae appear to react to higher policy rates by cutting back on their securitization activity but expanding loans to the Federal Home Loan Bank system.

Contents:

Cover; Credit, Securitization and Monetary Policy: Watch Out for Unintended Consequencse; Abstract; I. INTRODUCTION; II. A BRIEF OVERVIEW OF MORTGAGE SECURITIZATION IN THE U.S.; III. IDENTIFICATION STRATEGY OF INTEREST RATE SHOCKS; IV. DESCRIPTION OF THE DATA; V. EMPIRICAL RESULTS; VI. CONCLUSIONS; VII. APPENDIX; VIII. REFERENCES

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed October 18, 2016).

ISBN:

9781475525168

1475525168

9781475525304

1475525303