Yale School of Management

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News in Systemic Risk: Wednesday, May 27, 2020

May 27, 2020
COVID-19 and non-performing loans: lessons from past crises (Anil Ari, Sophia Chen, Lev Ratnovski; European Central Bank) Still the world's safe haven? Redesigning the U.S. Treasury market after the COVID-19 crisis (Darrell Duffie; Brookings Institution) Fannie and Freddie's Capital Dilemma (Telis Demos; Wall Street Journal) EU Aims to Back Struggling South With Fiscal Shock and Awe (Nikos Chrysoloras, Viktoria Dendrinou; Bloomberg) Brussels wants €750bn borrowing power to fund virus recovery (Sam Fleming, Jim Brunsden; Financial Times) Sarb’s Kganyago ‘concerned’ over sovereign-bank links (CentralBanking) Global Supply Chains in the Pandemic (Barthélémy Bonadio, Zhen Huo, Andrei A. Levchenko, Nitya Pandalai-Nayar; National Bureau of Economic Research) Can the Covid Bailouts Save the Economy? (Vadim Elenev, Tim Landvoigt, Stijn Van Nieuwerburgh; National Bureau of Economic Research) Continue reading “News in Systemic Risk: Wednesday, May 27, 2020”

News in Systemic Risk: Tuesday, May 26, 2020

May 26, 2020
Financial Stability Review, May 2020 (European Central Bank) COVID-19 is placing unprecedented challenges on EU banks (European Banking Authority) EU watchdog hopeful most banks can absorb €380bn pandemic hit (Martin Arnold, Stephen Morris; Financial Times) What's the ECB doing in response to the COVID-19 crisis? (Sage Belz, Jeffrey Cheng, David Wessel, Daniel Gros, Angela Capolongo; Brookings Institution) Post-crisis Signals in Securitization: Evidence from Auto ABS (Elizabeth Klee, Chaehee Shin; Federal Reserve Board of Governors) Optimal Bailouts and the Doom Loop with a Financial Network (Agostino Capponi, Felix C. Corell, Joseph E. Stiglitz; National Bureau of Economic Research) Coronavirus crisis bailouts: Why they probably won't work politically (Jeffrey Chwieroth, Andrew Walter; VoxEU) Consumers Increasingly Expect Additional Government Support amid COVID-19 Pandemic (Gizem Koşar, Kyle Smith, and Wilbert van der Klaauw; Federal Reserve Bank of New York) Continue reading “News in Systemic Risk: Tuesday, May 26, 2020”

FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria

May 26, 2020
On May 13, the Federal Housing Finance Agency (FHFA) announced that homeowners who take advantage of COVID-19 mortgage forbearance will have the option to defer payment of the missed amounts until the home is sold or refinanced, or the mortgage matures, once they return to making their normal monthly mortgage payments. The next day, the FHFA announced an extension of its foreclosure and eviction moratoria to June 30. Continue reading “FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria”

Bank of Japan Increases Liquidity Measures

May 26, 2020
On May 22, the Bank of Japan (BOJ) extended and expanded its “Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19)” to 75 trillion yen (about $700 billion). This includes three programs: (1) $186 billion in Outright Purchases of Commercial Paper and Corporate Bonds, (2) $233 billion for the Special Funds-Supplying Operations, and (3) $279 billion for the recently launched New Fund-Provisioning Measure to support small and medium-sized enterprises. The duration of the measures was extended by six months from September 30, 2020 to March 31, 2021. On March 16, the BoJ had announced emergency measures to facilitate corporate financing that included the first two measures (For details on the third measure, see this YPFS blog post).  Continue reading “Bank of Japan Increases Liquidity Measures”

News in Systemic Risk: Wednesday, May 27, 2020

May 27, 2020
COVID-19 and non-performing loans: lessons from past crises (Anil Ari, Sophia Chen, Lev Ratnovski; European Central Bank) Still the world's safe haven? Redesigning the U.S. Treasury market after the COVID-19 crisis (Darrell Duffie; Brookings Institution) Fannie and Freddie's Capital Dilemma (Telis Demos; Wall Street Journal) EU Aims to Back Struggling South With Fiscal Shock and Awe (Nikos Chrysoloras, Viktoria Dendrinou; Bloomberg) Brussels wants €750bn borrowing power to fund virus recovery (Sam Fleming, Jim Brunsden; Financial Times) Sarb’s Kganyago ‘concerned’ over sovereign-bank links (CentralBanking) Global Supply Chains in the Pandemic (Barthélémy Bonadio, Zhen Huo, Andrei A. Levchenko, Nitya Pandalai-Nayar; National Bureau of Economic Research) Can the Covid Bailouts Save the Economy? (Vadim Elenev, Tim Landvoigt, Stijn Van Nieuwerburgh; National Bureau of Economic Research) Continue reading “News in Systemic Risk: Wednesday, May 27, 2020”

News in Systemic Risk: Tuesday, May 26, 2020

May 26, 2020
Financial Stability Review, May 2020 (European Central Bank) COVID-19 is placing unprecedented challenges on EU banks (European Banking Authority) EU watchdog hopeful most banks can absorb €380bn pandemic hit (Martin Arnold, Stephen Morris; Financial Times) What's the ECB doing in response to the COVID-19 crisis? (Sage Belz, Jeffrey Cheng, David Wessel, Daniel Gros, Angela Capolongo; Brookings Institution) Post-crisis Signals in Securitization: Evidence from Auto ABS (Elizabeth Klee, Chaehee Shin; Federal Reserve Board of Governors) Optimal Bailouts and the Doom Loop with a Financial Network (Agostino Capponi, Felix C. Corell, Joseph E. Stiglitz; National Bureau of Economic Research) Coronavirus crisis bailouts: Why they probably won't work politically (Jeffrey Chwieroth, Andrew Walter; VoxEU) Consumers Increasingly Expect Additional Government Support amid COVID-19 Pandemic (Gizem Koşar, Kyle Smith, and Wilbert van der Klaauw; Federal Reserve Bank of New York) Continue reading “News in Systemic Risk: Tuesday, May 26, 2020”

FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria

May 26, 2020
On May 13, the Federal Housing Finance Agency (FHFA) announced that homeowners who take advantage of COVID-19 mortgage forbearance will have the option to defer payment of the missed amounts until the home is sold or refinanced, or the mortgage matures, once they return to making their normal monthly mortgage payments. The next day, the FHFA announced an extension of its foreclosure and eviction moratoria to June 30. Continue reading “FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria”

Bank of Japan Increases Liquidity Measures

May 26, 2020
On May 22, the Bank of Japan (BOJ) extended and expanded its “Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19)” to 75 trillion yen (about $700 billion). This includes three programs: (1) $186 billion in Outright Purchases of Commercial Paper and Corporate Bonds, (2) $233 billion for the Special Funds-Supplying Operations, and (3) $279 billion for the recently launched New Fund-Provisioning Measure to support small and medium-sized enterprises. The duration of the measures was extended by six months from September 30, 2020 to March 31, 2021. On March 16, the BoJ had announced emergency measures to facilitate corporate financing that included the first two measures (For details on the third measure, see this YPFS blog post).  Continue reading “Bank of Japan Increases Liquidity Measures”