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Participating mortgages and the efficiency of financial intermediation

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Participating mortgages and the efficiency of financial intermediation. / Ebrahim, M.S.; Shackleton, M.B.; Wojakowski, R.M.
In: Journal of Banking and Finance, Vol. 35, No. 11, 01.11.2011, p. 3042-3054.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Ebrahim, MS, Shackleton, MB & Wojakowski, RM 2011, 'Participating mortgages and the efficiency of financial intermediation', Journal of Banking and Finance, vol. 35, no. 11, pp. 3042-3054. https://doi.org/10.1016/j.jbankfin.2011.04.008

APA

Ebrahim, M. S., Shackleton, M. B., & Wojakowski, R. M. (2011). Participating mortgages and the efficiency of financial intermediation. Journal of Banking and Finance, 35(11), 3042-3054. https://doi.org/10.1016/j.jbankfin.2011.04.008

CBE

Ebrahim MS, Shackleton MB, Wojakowski RM. 2011. Participating mortgages and the efficiency of financial intermediation. Journal of Banking and Finance. 35(11):3042-3054. https://doi.org/10.1016/j.jbankfin.2011.04.008

MLA

Ebrahim, M.S., M.B. Shackleton and R.M. Wojakowski. "Participating mortgages and the efficiency of financial intermediation". Journal of Banking and Finance. 2011, 35(11). 3042-3054. https://doi.org/10.1016/j.jbankfin.2011.04.008

VancouverVancouver

Ebrahim MS, Shackleton MB, Wojakowski RM. Participating mortgages and the efficiency of financial intermediation. Journal of Banking and Finance. 2011 Nov 1;35(11):3042-3054. doi: 10.1016/j.jbankfin.2011.04.008

Author

Ebrahim, M.S. ; Shackleton, M.B. ; Wojakowski, R.M. / Participating mortgages and the efficiency of financial intermediation. In: Journal of Banking and Finance. 2011 ; Vol. 35, No. 11. pp. 3042-3054.

RIS

TY - JOUR

T1 - Participating mortgages and the efficiency of financial intermediation

AU - Ebrahim, M.S.

AU - Shackleton, M.B.

AU - Wojakowski, R.M.

PY - 2011/11/1

Y1 - 2011/11/1

N2 - This paper establishes a basic framework to study three different variants of Participating Mortgages (PMs). We obtain results for Shared Appreciation Mortgages (SAMs), Shared Income Mortgages (SIMs) and Shared Equity Mortgages (SEMs) in closed-form. We illustrate our findings with examples that show PMs are also attractive in an environment where prepayment can occur. Finally we conclude with the public policy implications of employing PMs as workout loans, especially post sub-prime crisis. We argue that by facilitating better risk sharing, PMs offer a means to enhance the efficiency and resiliency of the financial system.

AB - This paper establishes a basic framework to study three different variants of Participating Mortgages (PMs). We obtain results for Shared Appreciation Mortgages (SAMs), Shared Income Mortgages (SIMs) and Shared Equity Mortgages (SEMs) in closed-form. We illustrate our findings with examples that show PMs are also attractive in an environment where prepayment can occur. Finally we conclude with the public policy implications of employing PMs as workout loans, especially post sub-prime crisis. We argue that by facilitating better risk sharing, PMs offer a means to enhance the efficiency and resiliency of the financial system.

U2 - 10.1016/j.jbankfin.2011.04.008

DO - 10.1016/j.jbankfin.2011.04.008

M3 - Article

VL - 35

SP - 3042

EP - 3054

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

SN - 0378-4266

IS - 11

ER -