Yale School of Management

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Mortgage Forbearance and Housing Expense Relief in Response to the COVID-19 Outbreak

April 7, 2020

With US unemployment claims at record highs due to the nation’s directive to close many businesses and shelter-in-place, many individuals are struggling to pay recurring fixed costs, such as mortgages and rent. In response, the United States instituted the CARES Act, providing opportunities for mortgage forbearance and moratoria on evictions for all holders of federally backed loans. Other countries have instituted similar policies, but with varying time-frames and coverage for homeowners and renters.

Continue reading “Mortgage Forbearance and Housing Expense Relief in Response to the COVID-19 Outbreak”

Expanding Debt Restructuring Options for Mortgage Lenders in Response to the COVID-19 Outbreak

April 7, 2020

With the outbreak of the COVID-19 virus, many countries have instituted some form of right to mortgage forbearance and protection from foreclosure or eviction. Homeowners may request a forbearance of payment for a negotiated or predetermined fixed period. At the end of the forbearance period, lenders work directly with borrowers to recoup the payments missed, by finding alternative payment schedules. Lenders may change the outstanding principal, interest rates, or term of the loan to help the borrower. 

Continue reading “Expanding Debt Restructuring Options for Mortgage Lenders in Response to the COVID-19 Outbreak”

What macroprudential policies are countries using to help their economies through the Covid-19 crisis?

April 6, 2020

Countries around the world are reeling from the health threat and economic and financial fallout from COVID-19. Legislatures are responding with massive relief programs. Central banks have lowered interest rates and opened lender-of-last-resort spigots to support the flow of credit and maintain financial market functioning.

Authorities are also deploying macroprudential policies, many of them developed or improved since the global financial crisis of a decade ago. In this blog, we describe the main macroprudential measures that countries have taken recently. We summarize specific actions and factors considered when relaxing bank capital, loan forbearance, and liquidity requirements. Since late January, about 50 countries have made more than 230 announcements, with up to 500 separate actions, based on current entries in the new Yale Program on Financial Stability 2020 Financial-Intervention Tracker. Macroprudential announcements represent 40 percent of the announcements in the tracker, which also includes those for fiscal, monetary, and emergency liquidity (see figures).

Continue reading “What macroprudential policies are countries using to help their economies through the Covid-19 crisis?”

Professor Shiller Discusses Today’s Economic Narrative with Asset Management Students

By: Electra Ferriello April 6, 2020
shiller

Professor William Goetzmann is the faculty director of the MBA for Executives Asset Management area of focus and selects a variety of guest speakers to participate in the asset management colloquium series. Recently, students were treated to a very appropriately timed virtual guest speaker....

Continue reading “Professor Shiller Discusses Today’s Economic Narrative with Asset Management Students”

US Supports Individuals and Households in Response to COVID-19

April 3, 2020

The $2.2 trillion CARES Act, which the US Congress passed on March 27, 2020, provides direct payments to individuals, temporarily expands unemployment insurance, and eases restrictions on withdrawing money from retirement accounts for those affected by the coronavirus. The government also offered mortgage forbearance to certain households and extended the tax filing deadline. These policies specifically provide support to individuals and households during the COVID-19 crisis. 

Continue reading “US Supports Individuals and Households in Response to COVID-19”

News in Systemic Risk: Wednesday, April 1, 2020 (10 a.m. ET)

April 1, 2020

The Fed Is Settling Into Its Role as the World’s Central Bank (Mike Bird; Wall Street Journal)

Economic Policies for the COVID-19 War (Giovanni Dell’Ariccia, Paolo Mauro, Antonio Spilimbergo, and Jeromin Zettelmeyer; IMF)

Economists in the 2008 crisis: Slow to see, fast to act (Daniel Levy, Tamir Mayer, Alon Raviv; VoxEU)

COVID-19 and the economy: Your questions, our answers (David Wessel; Brookings Institution)

Dollar funding costs during the Covid-19 crisis through the lens of the FX swap market (Stefan Avdjiev, Egemen Eren and Patrick McGuire; Bank of International Settlements)

Continue reading “News in Systemic Risk: Wednesday, April 1, 2020 (10 a.m. ET)”

Mortgage Forbearance and Housing Expense Relief in Response to the COVID-19 Outbreak

April 7, 2020

With US unemployment claims at record highs due to the nation’s directive to close many businesses and shelter-in-place, many individuals are struggling to pay recurring fixed costs, such as mortgages and rent. In response, the United States instituted the CARES Act, providing opportunities for mortgage forbearance and moratoria on evictions for all holders of federally backed loans. Other countries have instituted similar policies, but with varying time-frames and coverage for homeowners and renters.

Continue reading “Mortgage Forbearance and Housing Expense Relief in Response to the COVID-19 Outbreak”

Expanding Debt Restructuring Options for Mortgage Lenders in Response to the COVID-19 Outbreak

April 7, 2020

With the outbreak of the COVID-19 virus, many countries have instituted some form of right to mortgage forbearance and protection from foreclosure or eviction. Homeowners may request a forbearance of payment for a negotiated or predetermined fixed period. At the end of the forbearance period, lenders work directly with borrowers to recoup the payments missed, by finding alternative payment schedules. Lenders may change the outstanding principal, interest rates, or term of the loan to help the borrower. 

Continue reading “Expanding Debt Restructuring Options for Mortgage Lenders in Response to the COVID-19 Outbreak”

What macroprudential policies are countries using to help their economies through the Covid-19 crisis?

April 6, 2020

Countries around the world are reeling from the health threat and economic and financial fallout from COVID-19. Legislatures are responding with massive relief programs. Central banks have lowered interest rates and opened lender-of-last-resort spigots to support the flow of credit and maintain financial market functioning.

Authorities are also deploying macroprudential policies, many of them developed or improved since the global financial crisis of a decade ago. In this blog, we describe the main macroprudential measures that countries have taken recently. We summarize specific actions and factors considered when relaxing bank capital, loan forbearance, and liquidity requirements. Since late January, about 50 countries have made more than 230 announcements, with up to 500 separate actions, based on current entries in the new Yale Program on Financial Stability 2020 Financial-Intervention Tracker. Macroprudential announcements represent 40 percent of the announcements in the tracker, which also includes those for fiscal, monetary, and emergency liquidity (see figures).

Continue reading “What macroprudential policies are countries using to help their economies through the Covid-19 crisis?”

Professor Shiller Discusses Today’s Economic Narrative with Asset Management Students

By: Electra Ferriello April 6, 2020
shiller

Professor William Goetzmann is the faculty director of the MBA for Executives Asset Management area of focus and selects a variety of guest speakers to participate in the asset management colloquium series. Recently, students were treated to a very appropriately timed virtual guest speaker....

Continue reading “Professor Shiller Discusses Today’s Economic Narrative with Asset Management Students”

US Supports Individuals and Households in Response to COVID-19

April 3, 2020

The $2.2 trillion CARES Act, which the US Congress passed on March 27, 2020, provides direct payments to individuals, temporarily expands unemployment insurance, and eases restrictions on withdrawing money from retirement accounts for those affected by the coronavirus. The government also offered mortgage forbearance to certain households and extended the tax filing deadline. These policies specifically provide support to individuals and households during the COVID-19 crisis. 

Continue reading “US Supports Individuals and Households in Response to COVID-19”

News in Systemic Risk: Wednesday, April 1, 2020 (10 a.m. ET)

April 1, 2020

The Fed Is Settling Into Its Role as the World’s Central Bank (Mike Bird; Wall Street Journal)

Economic Policies for the COVID-19 War (Giovanni Dell’Ariccia, Paolo Mauro, Antonio Spilimbergo, and Jeromin Zettelmeyer; IMF)

Economists in the 2008 crisis: Slow to see, fast to act (Daniel Levy, Tamir Mayer, Alon Raviv; VoxEU)

COVID-19 and the economy: Your questions, our answers (David Wessel; Brookings Institution)

Dollar funding costs during the Covid-19 crisis through the lens of the FX swap market (Stefan Avdjiev, Egemen Eren and Patrick McGuire; Bank of International Settlements)

Continue reading “News in Systemic Risk: Wednesday, April 1, 2020 (10 a.m. ET)”