IDEAS home Printed from https://ideas.repec.org/p/col/000092/006827.html
   My bibliography  Save this paper

Loan sales under asymmetric information

Author

Listed:
  • Mónica Vargas

Abstract

Loans are illiquid assets that can be sold in a secondary market even that buyershave no certainty about their quality. I study a model in which a lender has accessto new investment opportunities when all her assets are illiquid. To raise funds, thelender may either borrow using her assets as collateral, or she can sell them in a secondarymarket. Given asymmetric information about assets quality, the lender cannotrecover the total value of her assets. There is then a role for the government to correctthe information problem using fiscal tools.

Suggested Citation

  • Mónica Vargas, 2010. "Loan sales under asymmetric information," Documentos de Trabajo 6827, Universidad del Rosario.
    • Handle: RePEc:col:000092:006827
    as

    Download full text from publisher

    File URL: http://repository.urosario.edu.co/bitstream/handle/10336/10829/6827.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Loan Sales; Asymmetric Information; Liquidity; Securitization;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000092:006827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Facultad de Economía (email available below). General contact details of provider: https://edirc.repec.org/data/ferosco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.