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SUMMARY:Asset Quality Dynamics
DTSTART:20190315T103000
DTEND:20190315T120000
DTSTAMP:20260407T051009Z
UID:81c8d1ab4bbb309504f56fe237c1acd75870bec127ad97b5b516d238
CATEGORIES:Conferences - Seminars
DESCRIPTION:Erwan QUINTIN\, Wisconsin School of Business\nWe describe a dy
 namic extension of Allen and Gale (1998)’s optimal security design model
  and provide a recursive method for computing equilibria in the resulting 
 environment. The model is quantitatively consistent with the cyclical prop
 erties of safe corporate debt issues\, in particular with the fact that th
 ose issues are less procyclical than other sources of corporate financing.
  It is also consistent with the countercyclicality of risk spreads on corp
 orate debt. We then use the model to measure the effect of a protracted pe
 riods of low safe yields\, one of the main features of the so-called “sa
 ving glut” the global economy is currently experiencing. A long period o
 f low interest rates on safe debt has little impact on the level of econom
 ic activity but causes output and investment volatility to fall.\n 
LOCATION:UNIL\, Extranef\, room 126 https://planete.unil.ch/plan/?local=EX
 T-126
STATUS:CONFIRMED
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