Asset-Backed Securities

2019 ◽  
pp. 403-420
Author(s):  
Massimo Guidolin ◽  
Manuela Pedio
Keyword(s):  
Detailed Analysis ◽  
Cash Flow ◽  
Credit Card ◽  
Student Loans ◽  
Flow Structures ◽  
Credit Enhancement ◽  
Rating Process ◽  
Key Features ◽  
Asset Backed Securities ◽  
Legal Entities

This chapter investigates the mechanics of the origination process and the main characteristics of asset-backed securities (ABSs). In particular, it provides an overview of why and how unencumbered assets, such as loans, may be pooled into special legal entities, such as trusts, that are isolated from potential bankruptcy proceedings that may involve the issuer of the assets. The discussion also explores the cash flow structures that are typical of securitization as applied to ABSs. Special attention is given to the role played by the rating process in determining the value of ABSs and hence to credit enhancement mechanisms and the typical rules of allocation of default losses. The second part of the chapter is devoted to a detailed analysis of the key features of the most important categories of ABSs, namely, auto loans and leases, credit card receivables, student loans, and residential ABSs.

Securitization Process

2019 ◽  
pp. 365-382
Author(s):  
Mark Ferguson ◽  
Joseph Mcbride ◽  
Kevin Tripp
Keyword(s):  
Capital Structure ◽  
Credit Card ◽  
Student Loans ◽  
General Structure ◽  
Commercial Real Estate ◽  
Single Family ◽  
Risk Return ◽  
Mortgage Backed Securities ◽  
Asset Backed Securities ◽  
Opening Up

The securitization process has become an essential tool that provides liquidity to firms and borrowers while opening up the breadth and depth of the capital markets to previously underserved individuals and firms. Securitized products pool illiquid, idiosyncratic assets or contracts, turn those pools into claims (bonds) with a new capital structure with differing risk-return attributes, and sell those bonds to institutional investors. Securitization began in the housing market where single-family mortgages were pooled and sold to investors as mortgage-backed securities. The securitized market has increased in size and complexity to include many other asset classes such as commercial real estate loans in commercial mortgage-backed securities, student loans, credit card debt, auto leases, equipment leases, and aircraft leases in asset-backed securities. The purpose of this chapter is to describe the participants in and the general structure of securitizations.

A model of the mechanical design process based on empirical data

1988 ◽  
Vol 2 (1) ◽  
pp. 33-52 ◽  
Author(s):  
David G. Ullman ◽  
Thomas G. Dietterich ◽  
Larry A. Stauffer
Keyword(s):  
Problem Solving ◽  
Detailed Analysis ◽  
Conceptual Design ◽  
Design Process ◽  
Empirical Data ◽  
Mechanical Design ◽  
Level Of Detail ◽  
Cad Tools ◽  
Design Alternatives ◽  
Key Features

This paper describes the task/episode accumulation model (TEA model) of non-routine mechanical design, which was developed after detailed analysis of the audio and video protocols of five mechanical designers. The model is able to explain the behavior of designers at a much finer level of detail than previous models. The key features of the model are (a) the design is constructed by incrementally refining and patching an initial conceptual design, (b) design alternatives are not considered outside the boundaries of design episodes (which are short stretches of problem solving aimed at specific goals), (c) the design process is controlled locally, primarily at the level of individual episodes. Among the implications of the model are the following: (a) CAD tools should be extended to represent the state of the design at more abstract levels, (b) CAD tools should help the designer manage constraints, and (c) CAD tools should be designed to give cognitive support to the designer.

scholarly journals Attitudes toward Credit and Finances among College Students in Brazil and the United States

2013 ◽  
Vol 1 (1) ◽  
pp. 132 ◽  
Author(s):  
Jill M. Norvilitis ◽  
Wesley Mendes-Da-Silva
Keyword(s):  
United States ◽  
College Students ◽  
Parenting Practices ◽  
Credit Card ◽  
Student Loans ◽  
Credit Cards ◽  
Well Being ◽  
Developed Countries ◽  
The United States ◽  
Delay Of Gratification

Although research on credit card debt in developed countries has identified predictors of debt among<br />college students, it is unknown whether these same predictors apply in emerging markets, such as<br />Brazil. To examine this issue, a total of 1257 college students, 814 from Brazil and 443 from the United<br />States, participated in a study exploring the utility of a theory of planned behavior as a predictor of<br />credit card debtand student loans among college students, as well as perceived financial well-being.<br />Compared to the Brazilian participants, the American sample was more financially self-confident,<br />reported better financial well-being, and was more likely to believe that credit cards are negative.<br />Similar predictors of financial well-being emerged in the samples. Specifically, parenting practices<br />related to money and better self-reported delay of gratification are related to more positive financial<br />attitudes and lower levels of debt. Although the debt to income ratio among card holders was similar,<br />Brazilian students held more credit cards than American students. Greater delay of gratification was<br />related to lower levels of student loans in the United States, but there were no significant predictors of<br />student loans in Brazil.

The Relationship Between ADHD Symptomatology and Financial Well-Being Among College Students

2019 ◽  
pp. 108705471988744
Author(s):  
Jill M. Norvilitis ◽  
Braden K. Linn ◽  
Michelle M. Merwin
Keyword(s):  
College Students ◽  
Credit Card ◽  
Student Loans ◽  
Well Being ◽  
Student Loan ◽  
Financial Strain ◽  
Student Loan Debt ◽  
Financial Difficulties ◽  
Loan Debt ◽  
Students With Adhd

Objective: Although there is research that indicates financial difficulties among adults with ADHD, little research has examined financial well-being among college students with ADHD. Method: The present study explored the relationships between symptoms of ADHD and credit card and student loan debt, expected student loan debt, perceived financial well-being, worries about student loans, and financial strain behaviors among 612 college students at two public universities in different states. Results: Results indicated that students with more symptoms of ADHD reported lower perceived financial well-being, but there was no relationship between symptomatology and credit card and student loan debt or expected student loan debt. Conclusion: These results highlight the opportunity for interventions to address current perceived financial well-being and to prevent future financial concerns.

The impact and evolution of consumer delinquencies on bank loan delinquencies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ken B. Cyree
Keyword(s):  
Financial Crisis ◽  
Credit Card ◽  
Student Loans ◽  
Student Loan ◽  
Seemingly Unrelated Regression ◽  
Mortgage Loan ◽  
Bank Loan ◽  
Macro Level ◽  
Bank Debt ◽  
Content Type

PurposeThis study investigates the relation of bank loan delinquencies to Fed Survey delinquency data from 2003 to 2017. Bank-generated loans have lower delinquencies than all Fed Survey loan types. Survey mortgage and auto loan delinquencies are positively related to bank loan delinquencies indicating complimentary delinquency decisions for borrowers. Conversely, student loans delinquencies are negatively related to bank loans, consistent with borrowers substituting student loan payments for bank debt for the entire sample period. Student loan delinquencies are negatively related to per-capita bankruptcy, and all other types of debt have a positive relation. The relation between Fed Survey loan delinquencies and bank-generated loan delinquencies is time varying and changed after the financial crisis in 2008.Design/methodology/approachSeemingly Unrelated Regression is used to study delinquencies for three bank loan types and whether or not they are related to Fed Survey loan delinquencies. The sample is split into pre-financial crisis before 2008 and post-crisis after 2008.FindingsSeemingly Unrelated Regression (SUR) results show that bank delinquencies for second mortgages and “Other” loan types are consistently complementary to Fed Survey mortgage loan delinquencies. Fed Survey auto loans delinquencies are also consistent with a complimentary relation, and these results are largely driven by the relation after the financial crisis of 2008 since pre-crisis regression results are not significant for every dependent variable. Credit card loan delinquencies have a negative and substitute relation with bank-generated first mortgage loan delinquencies prior to the crisis in 2008, and with bank-generated second mortgages after the crisis. Conversely, student loan delinquencies from the Fed Survey are negatively and significantly related to bank mortgages for the entire sample period, but only with bank-generated first mortgages after 2008. The student loan delinquency results are consistent with income smoothing, on average, although this is not explicitly tested at the micro level since this study uses macro-level data and not borrower-specific data. These findings are also consistent with conventional wisdom that student loans provide “financial slack” and borrower flexibility.Research limitations/implicationsA limiting factor is this study uses macro-level data and not borrower-specific data.Practical implicationsEmpirical findings are consistent with prior research that student loans provide income smoothing and “financial slack,” and borrowers with payment challenges will pay other debt before student loans.Social implicationsBorrowers in financial trouble tend to be delinquent for all debt, and more so for student debt.Originality/valueTo investigate whether Fed Survey delinquencies of auto loans, first mortgages, student loans and credit card loans from all sources have complementary or substitution effects with bank debt at a macro level. The study investigates whether bank debt follows “market trends” as a complementary effect, or if bank debt has a negative relation to other debt indicating a substitution effect.

Interest Due under Article 19 of the Tax and Insurance Procedure Code

De Jure ◽  
2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Ani Miteva ◽  
Keyword(s):  
Detailed Analysis ◽  
Case Law ◽  
Legal Provisions ◽  
Procedure Code ◽  
Tax Audit ◽  
Special Case ◽  
Personal Liability ◽  
Legal Entities

A special case of personal liability of the management of taxable legal entities has been created through the provisions of Article 19 of the Tax and Insurance Procedure Code (TIPC). Following the amendments to the aforementioned legal provisions, which have come into force on 4 August and 21 November 2017, the subjective scope of the liability under Article 19 of the TIPC has been significantly expanded as it currently covers the majority owners of the taxable person’s capital and, in certain situations, the shareholders holding minority shares. In relation to the increasing number of tax audit proceedings focusing on the realization of the liability under Article 19 of the TIPC, and the expanding case law on the application of the above-mentioned legal provisions, the scope of Article 19 of the TIPC requires a more detailed analysis, particularly of the interest due.

The Making of a Watchdog

Watchdog ◽  
2020 ◽  
pp. 40-54
Author(s):  
Richard Cordray
Keyword(s):  
Credit Card ◽  
Student Loans ◽  
Majority Vote ◽  
The Political ◽  
Financial Protection ◽  
Simple Majority ◽  
Financial Industry ◽  
Political Opposition ◽  
President Obama ◽  
Simple Majority Vote

The Consumer Financial Protection Bureau’s strategy was to push through the political opposition by acting aggressively for consumers. Early on, the bureau worked to make the terms of financial products more understandable for consumers, creating streamlined forms for mortgages, student loans, and credit cards. It took major enforcement actions against credit card companies for deceptive marketing, returning billions of dollars to consumers. As Cordray’s nomination languished in the Senate, President Obama made an extraordinary recess appointment to install him on a temporary basis. The financial industry immediately challenged the appointment in court, and Republicans pushed back hard in tough oversight hearings. In July 2013, the Democratic Senate majority leader, Harry Reid, moved to invoke the “nuclear option” to approve nominations by a simple majority vote. The Republicans yielded, and Cordray was confirmed in a bipartisan vote of sixty-six to thirty-four. In a tough two-year battle, the bureau prevailed over the strenuous opposition.

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