Secondary Market Prices and Mexico's Brady Deal

Abstract We show how securitization affects the size of the nonbank lending sector through a novel price-based channel. We identify the channel using a regulatory spillover shock to the cross-section of mortgage-backed security prices: the U.S. liquidity coverage ratio. The shock increases secondary market prices for FHA-insured loans by granting them favorable regulatory status once securitized. Higher prices lower nonbanks’ funding costs, prompting them to loosen lending standards and originate more FHA-insured loans. This channel accounts for 22% of nonbanks’ growth in overall mortgage market share over 2013–2015. While the shock creates risks for financial stability, homeownership also increases.

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German real estate funds: changes in return distributions and portfolio favourability

Journal of European Real Estate Research ◽

10.1108/jerer-10-2013-0024 ◽

2014 ◽

Vol 7 (1) ◽

pp. 87-111 ◽

Cited By ~ 1

Author(s):

Michael Stein

Keyword(s):

Real Estate ◽

Asset Allocation ◽

Secondary Market ◽

Real Estate Investment ◽

Market Prices ◽

Content Type ◽

Savings Banks ◽

Asset Values ◽

Return Distributions ◽

Clear Shift

Purpose – Since 2008, the German open-ended real estate fund (GOEREF) industry has experienced a critical phase of suspensions of redemption of fund shares, announced fund terminations and, eventually, introduction of a new regulation. With assets under the management of over 80 billion, GOEREFs are the dominant indirect real estate investment vehicle in Germany. Thus, it is extremely important to study the effects of this crisis on the risk and return characteristics of the respective funds. The paper aims to discuss these issues. Design/methodology/approach – Both net asset values (NAVs) and potential secondary market prices of the shares of funds with suspended redemptions are used. The resulting total return patterns are analysed on an index basis for fund groups that best represent the most important investor groups for GOEREFs. Findings – Groups that comprised a higher number of funds with suspended redemptions were considerably worse off and less attractive in an asset allocation context than the others given the often much lower secondary market prices. However, changes in return and risk must also be considered in terms of NAVs. The fund group comprising co-operative savings banks' funds was virtually unaffected by the liquidity crisis and continued to deliver stable and non-volatile returns, while the other fund groups exhibited a clear shift in their respective return profiles. Originality/value – This study analyses fund groups that reflect the most important investor groups by using both types of important prices in a comprehensive industry sample. It, thus, provides valuable insights into the changing profiles of the funds and groups and their favourability from an asset allocation perspective.

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A Novel Financial Market for Mitigating Hurricane Risk. Part II: Empirical Validation

Weather Climate and Society ◽

10.1175/wcas-d-13-00033.1 ◽

2014 ◽

Vol 6 (3) ◽

pp. 318-330 ◽

Cited By ~ 2

Author(s):

Robert J. Meyer ◽

Michael Horowitz ◽

Daniel S. Wilks ◽

Kenneth A. Horowitz

Keyword(s):

Companion Paper ◽

Secondary Market ◽

Eastern United States ◽

Market Prices ◽

Prior Probabilities ◽

Option Trading ◽

Market Participants ◽

Individual Outcomes ◽

Coastal County ◽

Using Data

Abstract This paper explores the empirical features of a novel commodity option trading instrument described in the companion paper (Part I) that allows market participants to hedge against the risk that a coastal county or region in the eastern United States will experience a hurricane landfall. In this instrument investors can speculate on whether a landfall event will occur in any one of a number of coastal counties or regions, with option prices being determined by an adaptive control algorithm that reflects previous purchasing decisions of other market participants. In this paper, the authors report the results of an experiment designed to test the empirical robustness of this mechanism using data from traders buying landfall options over the course of a simulated hurricane season. In the experiment traders are given the opportunity to buy landfall options in the primary market as well as sell and buy options in a conventional bilateral secondary market. The data show that aggregate market prices quickly converge to rational (efficient) levels among market participants after limited amounts of trading experience. Some systematic anomalies are observed in the trading of options for individual outcomes, however, with the most notable being an initial tendency to overvalue landfall options that have the highest prior probabilities and for valuations of the “No Landfall” option to be inflated immediately after a storm threat passes without making landfall.

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DEBT-EQUITY SWAPS: INVESTMENT INCENTIVE EFFECTS AND SECONDARY MARKET PRICES

Oxford Economic Papers ◽

10.1093/oxfordjournals.oep.a042079 ◽

1993 ◽

Vol 45 (1) ◽

pp. 130-145

Author(s):

MICHAEL BOWE ◽

JAMES W. DEAN

Keyword(s):

Secondary Market ◽

Market Prices ◽

Investment Incentive ◽

Incentive Effects

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On the Demand for Live Sport Contests: Insights From the Secondary Market for National Football League Tickets

Journal of Sport Management ◽

10.1123/jsm.2014-0034 ◽

2016 ◽

Vol 30 (1) ◽

pp. 82-94 ◽

Cited By ~ 3

Author(s):

Mark A. Diehl ◽

Joris Drayer ◽

Joel G. Maxcy

Keyword(s):

National Football League ◽

Secondary Market ◽

Comprehensive Investigation ◽

Market Prices ◽

Ticket Prices ◽

Uncertainty Of Outcome ◽

Resale Market

This study examines the determinants of regular season National Football League (NFL) ticket prices on the secondary, or resale, market. Prices in the secondary market are dynamic and thus particularly useful for evaluating the demand for live NFL contests. A rich dataset is employed that contains information about all transactions conducted by a prominent ticketing site during a full NFL season and allows for a comprehensive investigation of the components of demand in this market. Included in the analysis is a first look at the demand for different seating locations within the stadium. The revealed determinants of demand for resale tickets were largely consistent with studies of the primary market; however, there are notable differences in spectators’ preferences for contest characteristics and uncertainty of outcome across the seating categories. The evidence also suggests that while hometown fans are the primary participants, visiting teams are likely active in the resale market.

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A New Age of Demand-Based Pricing: An Examination of Dynamic Ticket Pricing and Secondary Market Prices in Major League Baseball

Journal of Sport Management ◽

10.1123/jsm.26.6.532 ◽

2012 ◽

Vol 26 (6) ◽

pp. 532-546 ◽

Cited By ~ 17

Author(s):

Stephen L. Shapiro ◽

Joris Drayer

Keyword(s):

San Francisco ◽

Secondary Market ◽

Market Prices ◽

Ticket Price ◽

Ticket Pricing ◽

Dynamic Ticket Pricing ◽

Ticket Prices ◽

Changes Over Time ◽

Price Differences ◽

The Relationship

In 2010, the San Francisco Giants became the first professional team to implement a comprehensive demand-based ticket pricing strategy called dynamic ticket pricing (DTP). In an effort to understand DTP as a price setting strategy, the current investigation explored Giants’ ticket prices during the 2010 season. First, the relationship between fixed ticket prices, dynamic ticket prices, and secondary market ticket prices for comparable seats were examined. In addition, seat location and price changes over time were examined to identify potential effects on ticket price in the primary and secondary market. Giants’ ticket price data were collected for various games throughout the 2010 season. A purposive selection of 12 games, which included (N= 1,316) ticket price observations, were chosen in an effort to include a multitude of game settings. Two ANOVA models were developed to examine price differences based on pricing structure, market, section, and time. Findings showed significant differences between fixed ticket prices, dynamic ticket prices, and secondary market ticket prices, with fixed ticket prices on the low end and secondary market ticket prices on the high end of the pricing spectrum. Furthermore, time was found to have a significant influence on ticket price; however, the influence of time varied by market and seat location. These findings are discussed and both theoretical and practical implications are considered.

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