Lusk Real Estate Seminar on "Cross-Border Residential Lending"

Friday, October 20 at 12:00pm to 1:30pm

Lewis Hall (RGL), 308
650 Childs Way, Los Angeles, CA 90089

USC Lusk Center for Real Estate Research Seminar

 

Title:

Cross-Border Residential Lending: Theory and Evidence from the European Sovereign Debt Crisis

 

Presenter:

Jaime Luque

University of Wisconsin - Madison

 

Abstract:

We examine bank strategies to rebalance residential mortgage portfolios toward other geographical regions in the context of the European sovereign debt crisis. For banks in Greece, Ireland, Cyprus, Italy, Portugal, and Spain (GICIPS), we find evidence of flight-to-quality if banks were undercapitalized and had high funding cost, and evidence of risky-lending if banks were undercapitalized but without funding problems. For banks in core safe European countries, we find evidence of flight-to-quality among banks with high capital ratios, and risky-lending among banks with low funding cost. We rationalize these empirical results with a general equilibrium model of cross-border mortgage lending.

 

For questions or to RSVP, please email: tibayan@price.usc.edu

Event Type

Lecture / Talk / Workshop

Audience

Students

Campus

University Park Campus

Cost

Free

Department

Price School of Public Policy

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