Essays On Brokers Financial Intermediaries And Securitized Mortgages

Download Essays On Brokers Financial Intermediaries And Securitized Mortgages full books in PDF, epub, and Kindle. Read online Essays On Brokers Financial Intermediaries And Securitized Mortgages ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Essays on Brokers, Financial Intermediaries, and Securitized Mortgages

Author : Luis Arturo Lopez
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (11 download)

DOWNLOAD NOW!

Book Synopsis Essays on Brokers, Financial Intermediaries, and Securitized Mortgages by : Luis Arturo Lopez

Download or read book Essays on Brokers, Financial Intermediaries, and Securitized Mortgages written by Luis Arturo Lopez and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the economic literature documents theoretical agency models that align the incentives between the agents and principals, there are countless anecdotes where the theoretical models do not hold in practice. This dissertation examines the behaviors of brokers and intermediaries in various sectors of the real estate market. The first two chapters focus on real estate brokers in the housing market while the latter two focus on financial intermediaries in the securitized mortgage market. The purpose is to draw lessons or policy implications. In Chapter 1, for instance, I find that homes owned by real estate agents sell at a premium of 2.7 percent (or $4,900) above the sale price of clients' homes. Homes of relatives sell at a premium of 1.3 percent (or $2,360). While prior literature attributes the price disparity to the agents' exploitation of information asymmetry about the market, I argue that the disparity likely derives from the contract rigidity in listing agreements. I show that real estate agents enjoy a low cost to breach contracts and can, therefore, enter or exit the market more easily than clients to obtain desirable prices. The policy implication is that reducing the agents' advantage requires increasing the households' power to breach listing agreements but at the trade-off of reducing the willingness of agents to participate in the market.In Chapter 2, using use artificial intelligence, I identify financial steering activity that is fostered by real estate agents representing sellers. Examining data that allows me to observe private information exchanges between listing and buyer agents, I find that over 13 percent of the homes sold had bidding constraints requiring financed buyers to obtain a pre-qualification letter from an affiliated lender even if pre-qualified with another lender. I also find that while steering decreases the transaction costs sellers experience by screening buyers (as agents representing sellers often proclaim), it decreases the equilibrium price of the average home by about 1 percent (or $1,900). Financial steering also displaces financed buyers (especially African Americans and Hispanics) while it favors cash or corporate investors. These findings present a trade-off that policymakers encounter when designing and enforcing anti-steering or pro-competition regulations in financial markets. In Chapter 3, I empirically examine the monitoring role of trustees in the securitization market for commercial mortgages. Using a natural experiment around mergers that result in servicers (i.e., agents) and trustees (i.e., monitors) falling under the same institutional umbrella, I present evidence that affiliation is associated with a decrease in the servicers' effort made on behalf of investors (i.e., principals). I also find that a servicer-trustee affiliation causes distortions to the cash flows to bondholders and a decrease in the average recovery rate of a delinquent commercial mortgage by up to $0.07 per dollar of outstanding debt, accounting for an economic impact of about $4.53 billion in market-wide liquidation losses. The policy implication is that third-party oversight plays an imperative role in aligning incentives.Finally, in Chapter 4, I examine how affiliation to senior bondholders can influence servicing decisions on delinquent loans in non-agency residential mortgage-backed securities. Making use of a natural experiment involving mergers and acquisitions that resulted in servicers owning investors who in turn have ownership of the bonds the servicers manage, I find that affiliation improves the chances that a loan is liquidated through a non-foreclosure avenue by about 33 percent relative to foreclosure. Moreover, analyzing investment-grade bond holdings, I find no evidence of senior investors responding negatively to servicer-investor affiliations in the RMBS market. Overall, these results suggest that exposing servicers to senior bond holdings through an affiliation with their own investors significantly improves the servicers' behavior.

Essays on Mortgage Broker, Borrower, and Lender Behavior in the Subprime Mortgage Market

Author : James Conklin
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (894 download)

DOWNLOAD NOW!

Book Synopsis Essays on Mortgage Broker, Borrower, and Lender Behavior in the Subprime Mortgage Market by : James Conklin

Download or read book Essays on Mortgage Broker, Borrower, and Lender Behavior in the Subprime Mortgage Market written by James Conklin and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation presents three essays on the behavior of mortgage brokers, borrowers, and lenders in the subprime mortgage market. In the first essay, I examine the relationship between the type of broker-borrower interaction in the origination process and subsequent mortgage performance. I show that face-to-face interaction between a mortgage broker and borrower before the loan funds is associated with lower levels of ex post default. This relation holds only for loans that have certain characteristics associated with low levels of financial literacy. Specifically, face-to-face interaction is negatively related to default for minorities, borrowers located in areas with low levels of education, low-income borrowers, and borrowers with low FICO scores. Additionally, a face-to-face meeting between the mortgage broker and the borrower is associated with lower default rates on cash-out loans, which brokers often originated as "credit-repair" loans. Moreover, the relation between default and broker-borrower interaction is significant only for certain loan products (ARMs, low-doc) that have been linked to low levels of financial literacy. Taken together, these results suggest that face-to-face interaction between the mortgage broker and borrower may reduce problems associated with financial illiteracy.In the second essay I explore differences in low-doc mortgages across employment types. Evidence suggests that stated income documentation mortgages, or "liars' loans," are used to falsify income so that borrowers can obtain mortgages that would be deemed unaffordable by traditional underwriting standards. By examining differences in stated income loans across employment types (e.g. self-employed versus W2 borrowers), I show that not all lies are created equal. My results demonstrate that high default rates for stated income loans are driven by W2 borrowers. For self-employed borrowers, default is not significantly related to the level of income documentation. Also, I find that income falsification is problematic only on stated income loans to W2 borrowers. In addition, I provide evidence that selection effects before the loan funds, at both the lender and borrower level, exist on stated income loans. Taken together, the results indicate that important differences exist between stated income loans to W2 borrowers versus low-doc loans to self-employed borrowers.The third essay investigates real earnings management in the context of the residential mortgage market. Specifically, I try to determine if the lender originates lower quality loans to meet earnings benchmarks. My results are consistent with the lender lowering origination standards to manipulate earnings. Depending on the specification, loans originated in the final month of income constrained quarters are 27% - 34% more likely to default, ceteris paribus. Furthermore, expected default rates, based on ex ante risk characteristics observable at origination, are higher in the final month of income constrained quarters. In addition, I try to detect how the lender manipulates its activities in the final month of quarters where it meets or just beats earnings expectations. The results indicate the lender is less likely to reject loan applications when it is in jeopardy of meeting earnings expectations.

A Series of Essays on Commercial Mortgage-backed Securities

Author : Stephen Lyon Buschbom
Publisher :
ISBN 13 :
Total Pages : 148 pages
Book Rating : 4.:/5 (1 download)

DOWNLOAD NOW!

Book Synopsis A Series of Essays on Commercial Mortgage-backed Securities by : Stephen Lyon Buschbom

Download or read book A Series of Essays on Commercial Mortgage-backed Securities written by Stephen Lyon Buschbom and published by . This book was released on 2017 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is comprised of two essays where the unifying theme is the use of hazard models in the study of commercial mortgage-backed securities (CMBS). The first essay constructs a model of mortgage delinquency which tests the extent to which borrowers anticipate a loan modification resulting from such a delinquency. Using a sample of modified loans from CMBS pools, we estimate the present value of modified cash flows and project modification benefits each month for all CMBS loans which are weighted by each loan's survival probability up to the time of modification to proxy for a borrower's anticipation of a beneficial modification. Our results confirm a borrower's anticipation of a modification increases the delinquency hazard, and supports theory that borrower delinquency is strategically endogenous. The second essay examines the investment decisions of regulated financial institutions. Specifically, an empirical model is developed to examine the selling behavior of insurers following a rating downgrade of a commercial mortgage-backed security (CMBS). The regulatory environment in the insurance industry creates a setting where firms must consider not only the regulatory impact of selling a security, but also the price of the security. By modeling the selling decision using a hazard model, it is possible to capture a dynamic characterization of the firm- and bond-specific attributes which affect the selling decision. Similar to prior studies, the model controls for an insurer's aggregate portfolio risk exposure but introduces an important variable: price. Estimating each security's price allows for creation of a proxy for an insurer's unrealized gain or loss. The results provide evidence that insurers are not primarily motivated by regulatory capital, but instead are influenced by aggregate portfolio risk exposure as well as the size of an unrealized gain or loss, which is found to be asymmetric between high- and low-risk exposure insurers, when evaluating a prospective sale transaction for a downgraded holding.

Three Essays in Financial Intermediation and Securitization

Author : Jun Zhu
Publisher :
ISBN 13 :
Total Pages : 121 pages
Book Rating : 4.:/5 (785 download)

DOWNLOAD NOW!

Book Synopsis Three Essays in Financial Intermediation and Securitization by : Jun Zhu

Download or read book Three Essays in Financial Intermediation and Securitization written by Jun Zhu and published by . This book was released on 2011 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on Intermediation in Financial Markets

Author : Hugues Dastarac
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (119 download)

DOWNLOAD NOW!

Book Synopsis Essays on Intermediation in Financial Markets by : Hugues Dastarac

Download or read book Essays on Intermediation in Financial Markets written by Hugues Dastarac and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I study broker-dealers' trading activity in the US corporate bond market. I find evidence of market making and of proprietary trading exploiting possible mispricings. Market making occurs when customers both buy and sell a bond in a day, which happens half of the time: as predicted by market making theories with adverse selection or inventory costs, prices go down (up) as customers sell (buy). Otherwise, evidence is in favor of broker-dealer initiated trades, i.e. proprietary trading: prices go up (down) when customers sell (buy). I test one aspect of proprietary trading predicted by theories of limits of arbitrage: dealers buy (sell) bonds that are relatively cheap (expensive) with respect to bonds of similar maturity, or with respect to Treasury bonds. These proprietary trading strategies are reduced after the crisis. Relatedly I show that before the 2007-2009 crisis, large broker-dealers borrowed and sold Treasury bonds in amounts similar to their corporate bond holding, but not after. I study why financial institutions trade forward and future contracts on assets they could buy or sell directly. I provide a dynamic trading model in which this occurs because of 1) imperfect competition and 2) uncertainty about future customer trades. Under imperfect competition, risk averse traders realize gains from trading inventory imbalances slowly, leaving them differentially exposed to a supply shock: sellers fear customers sells that depress prices, buyers fear customer buys that increase prices. Opposite exposure to the supply shock implies gains from trading the risk through forward contracts: in equilibrium sellers of the asset sell forwards to buyers, and risk sharing in the asset is slowed down. The cost of slower risk sharing is compensated by the benefit of more certain future trading surplus. Traders are more willing to create inventory imbalance with forward contracts, leading to tighter spreads and/or higher trading volume in fragmented markets. I study the opportunity for dealers, i.e. intermediaries in financial markets to open restricted markets parallel to a centralized, all-to-all market. In a dynamic trading model with imperfect competition, dealers have the opportunity to open a parallel market so that a restricted subset of them trades with customers. Dealers in the parallel market choose to have all customer trades in the parallel market, which makes both customers and dealers not trading in the parallel market worse off. Before dealers learn whether they will have an opportunity to trade with customers in the parallel market, they choose to open the parallel market, as long as the surplus from future transactions are sufficiently high compared with the cost of holding the asset until future transaction, highlighting the role of dynamic trading rent.

Essays in Derivatives

Author : Don M. Chance
Publisher : John Wiley & Sons
ISBN 13 : 1118160649
Total Pages : 403 pages
Book Rating : 4.1/5 (181 download)

DOWNLOAD NOW!

Book Synopsis Essays in Derivatives by : Don M. Chance

Download or read book Essays in Derivatives written by Don M. Chance and published by John Wiley & Sons. This book was released on 2011-07-05 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the updated second edition of Don Chance’s well-received Essays in Derivatives, the author once again keeps derivatives simple enough for the beginner, but offers enough in-depth information to satisfy even the most experienced investor. This book provides up-to-date and detailed coverage of various financial products related to derivatives and contains completely new chapters covering subjects that include why derivatives are used, forward and futures pricing, operational risk, and best practices.

Economic Development and Financial Instability

Author : Jan A. Kregel
Publisher : Anthem Press
ISBN 13 : 1783083824
Total Pages : 376 pages
Book Rating : 4.7/5 (83 download)

DOWNLOAD NOW!

Book Synopsis Economic Development and Financial Instability by : Jan A. Kregel

Download or read book Economic Development and Financial Instability written by Jan A. Kregel and published by Anthem Press. This book was released on 2014-10-15 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: Jan A. Kregel is considered to be “the best all-round general economist alive” (G. C. Harcourt). This is the first collection of his essays dealing with a wide range of topics reflecting the incredible depth and breadth of Kregel’s work. These essays focus on the role of finance in development and growth. Kregel has expanded Minsky’s original postulate that in capitalist economies stability engenders instability in international economy, and this volume collect’s Kregel’s key works devoted to financial instability, its causes and effects. The volume also contains Kregel’s most recent discussions of the Great Recession beginning in 2008.

The Theory of Financial Intermediation

Author : Bert Scholtens
Publisher :
ISBN 13 : 9783902109156
Total Pages : 59 pages
Book Rating : 4.1/5 (91 download)

DOWNLOAD NOW!

Book Synopsis The Theory of Financial Intermediation by : Bert Scholtens

Download or read book The Theory of Financial Intermediation written by Bert Scholtens and published by . This book was released on 2003 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Origins and Development of Financial Markets and Institutions

Author : Jeremy Atack
Publisher : Cambridge University Press
ISBN 13 : 1139477048
Total Pages : 497 pages
Book Rating : 4.1/5 (394 download)

DOWNLOAD NOW!

Book Synopsis The Origins and Development of Financial Markets and Institutions by : Jeremy Atack

Download or read book The Origins and Development of Financial Markets and Institutions written by Jeremy Atack and published by Cambridge University Press. This book was released on 2009-03-16 with total page 497 pages. Available in PDF, EPUB and Kindle. Book excerpt: Collectively, mankind has never had it so good despite periodic economic crises of which the current sub-prime crisis is merely the latest example. Much of this success is attributable to the increasing efficiency of the world's financial institutions as finance has proved to be one of the most important causal factors in economic performance. In a series of insightful essays, financial and economic historians examine how financial innovations from the seventeenth century to the present have continually challenged established institutional arrangements, forcing change and adaptation by governments, financial intermediaries, and financial markets. Where these have been successful, wealth creation and growth have followed. When they failed, growth slowed and sometimes economic decline has followed. These essays illustrate the difficulties of co-ordinating financial innovations in order to sustain their benefits for the wider economy, a theme that will be of interest to policy makers as well as economic historians.

The Rate and Direction of Inventive Activity Revisited

Author : Josh Lerner
Publisher : University of Chicago Press
ISBN 13 : 0226473031
Total Pages : 715 pages
Book Rating : 4.2/5 (264 download)

DOWNLOAD NOW!

Book Synopsis The Rate and Direction of Inventive Activity Revisited by : Josh Lerner

Download or read book The Rate and Direction of Inventive Activity Revisited written by Josh Lerner and published by University of Chicago Press. This book was released on 2012-04-15 with total page 715 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume offers contributions to questions relating to the economics of innovation and technological change. Central to the development of new technologies are institutional environments and among the topics discussed are the roles played by universities and the ways in which the allocation of funds affects innovation.

Non-Mainstream Dimensions of Global Political Economy

Author : Byasdeb Dasgupta
Publisher : Routledge
ISBN 13 : 1135050759
Total Pages : 226 pages
Book Rating : 4.1/5 (35 download)

DOWNLOAD NOW!

Book Synopsis Non-Mainstream Dimensions of Global Political Economy by : Byasdeb Dasgupta

Download or read book Non-Mainstream Dimensions of Global Political Economy written by Byasdeb Dasgupta and published by Routledge. This book was released on 2013-06-07 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book is a collection of essays written by scholars of global repute in honour of Professor Sunanda Sen. Each paper is well-researched and offers some new dimension to the understanding of the current global crisis, finance and labour including the epistemological viewpoints regarding the current global order. The uniqueness of the book is that in one place one can find different heterodox positions dealing with the present global order of finance and labour – post-Keynesian, Marxist etc. The contents of the book can be classified into three major sections – (1) global finance dealing with current global crisis; (2) methodological/epistemological concerns in terms of the global crisis, and (3) labour in the context of neoliberal global capitalism characterised by the process of financialisation. The entire book is an attempt to decipher the meaning and significance the process of financialisation produces for the real economy. One of the major conclusions drawn from the different studies in the book relates to the fact that global finance as it has been shaped today cannot delinked from the question of labour. The current global finance regime warrants neoliberal labour flexibility regime, the latter guaranteeing the necessary surplus generation for the pervasive finance. This book offers an analysis of current global crisis relating it to the present-day global finance and labour in terms of the process of neoliberal financialisation a flexible labour regime. It is based on non-mainstream heterodox approach in Economics and as such is a critique of the mainstream neoclassical position on current global crisis. The contents of the book will be of immense use to the researchers and students dealing with current global crisis, global finance and labour.

Operations in Financial Services

Author : Michael Pinedo
Publisher : Foundations and Trends in Technology, Information and Operations Management
ISBN 13 : 9781680833362
Total Pages : 132 pages
Book Rating : 4.8/5 (333 download)

DOWNLOAD NOW!

Book Synopsis Operations in Financial Services by : Michael Pinedo

Download or read book Operations in Financial Services written by Michael Pinedo and published by Foundations and Trends in Technology, Information and Operations Management. This book was released on 2017-12-21 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Operations in Financial Services establishes a framework for this research area from an operations management perspective. The first section presents an introduction and provides an overview of the topic. The second section establishes links between the current state of the art in relevant areas of operations management and operations research and three of the more important aspects of operations in financial services - (i) financial product design and testing, (ii) process delivery design, and (iii) process delivery management. The third section focuses on the current issues that are important in the financial services operations area. These issues center primarily on mobile online banking and trading in a global environment. The fourth section discusses operational risk aspects of financial services. The final section concludes with a discussion on research directions that may become of interest in the future.

Social Fairness and Economics

Author : Lance Taylor
Publisher : Routledge
ISBN 13 : 1136270884
Total Pages : 426 pages
Book Rating : 4.1/5 (362 download)

DOWNLOAD NOW!

Book Synopsis Social Fairness and Economics by : Lance Taylor

Download or read book Social Fairness and Economics written by Lance Taylor and published by Routledge. This book was released on 2013-02-11 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume brings together papers inspired by the work of Duncan Foley, an extraordinarily productive economist who has made seminal contributions to a wide variety of areas. Foley’s work cannot be easily classified, but one thread that runs through it is a critical examination (along both ethical and analytical lines) of conventional neoclassical economic theory, particularly involving general equilibrium theories of value and money. Foley was a pioneer of complexity economics as well, which adopts approaches to these questions drawn from natural sciences, so the collection therefore has an interdisciplinary quality that will interest a wide variety of readers. Some of the chapters are intellectual biographies that contextualize and identify Foley’s contributions to Keynesian macroeconomics, Marxian value theory, and complexity theory in economics. The topics covered include the economics of complexity; the ethics of general equilibrium theory; the economics of climate change; applications of Keynesian, Marxian and Ricardian political economy; and money and financial crises. The collection should be useful to scholars who work in various economic traditions critical of the currently dominant free-market approach, but it also speaks to scholars of critical theory in various disciplines beyond economics such as the mathematicians, physicists, and other natural scientists who are interested in understanding the complexity of social processes using their analytical frameworks. This book should also appeal to graduate students in economics who are working in these traditions, as well as scholars (including current graduate students in orthodox programs) who are dissatisfied with the current state of economic theory and would like to satisfy their intellectual curiosity by sampling the contributions of critical theorists.

The Financial Development Report 2008

Author :
Publisher : World Economic Forum
ISBN 13 : 9295044088
Total Pages : 363 pages
Book Rating : 4.2/5 (95 download)

DOWNLOAD NOW!

Book Synopsis The Financial Development Report 2008 by :

Download or read book The Financial Development Report 2008 written by and published by World Economic Forum. This book was released on 2008 with total page 363 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Complex Mortgages (CM)

Author : Gene Amromin
Publisher : DIANE Publishing
ISBN 13 : 1437987850
Total Pages : 57 pages
Book Rating : 4.4/5 (379 download)

DOWNLOAD NOW!

Book Synopsis Complex Mortgages (CM) by : Gene Amromin

Download or read book Complex Mortgages (CM) written by Gene Amromin and published by DIANE Publishing. This book was released on 2011 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: CM became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans (interest only, negative amortization, and teaser mortgages) enable households to postpone loan repayment compared to traditional mortgages and hence relax borrowing constraints. But, they increase household leverage and heighten dependence on mortgage refinancing. CM were chosen by prime borrowers with high income levels seeking to purchase expensive houses relative to their incomes. Borrowers with CM experience substantially higher ex post default rates than borrowers with traditional mortgages with similar characteristics. Illus. This is a print on demand report.

A Primer on Securitization

Author : Leon T. Kendall
Publisher : MIT Press
ISBN 13 : 9780262611633
Total Pages : 200 pages
Book Rating : 4.6/5 (116 download)

DOWNLOAD NOW!

Book Synopsis A Primer on Securitization by : Leon T. Kendall

Download or read book A Primer on Securitization written by Leon T. Kendall and published by MIT Press. This book was released on 2000 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Primer on Securitization introduces readers to America's newest system of raising capital: what it is, how it operates, and what difference securitization makes. Gathering fourteen lectures by the pioneers of securitization and by current practitioners--from Freddie Mac, Paine Webber, JP Morgan, Chrysler, McKinsey & Co, and other major players-- A Primer on Securitization introduces readers to America's newest system of raising capital: what it is, how it operates, and what difference securitization makes.The securitization process bypasses financial intermediaries that have historically collected deposits and loaned them to those seeking funds, and links borrowers directly to money and capital markets. Although little has been written about what is perhaps one of the most important innovations to emerge in financial markets since the 1930s, securitization has revolutionized the way that the borrowing needs of consumers and businesses are met. Today, for example, over two-thirds of all home loans are being securitized, along with substantial percentages of auto loans and credit card receivables, and the process continues to expand into new fields including synthetic securities. Authoritative and practical, these lectures show how securitization was developed to fill a gap in financial markets. They discuss the nature and causes of the market imperfections that made securitization a valuable source of funds, and describe how securitization has linked local mortgage markets with international capital markets. Readers will gain a broad perspective of the different parties--the borrower, the loan originator, the servicer, the rating agency, the special purpose vehicle, the credit enhancer, the underwriter, and the investor--as well as a detailed analysis of how these parties relate to one another. From the inception of the secondary mortgage market through the collapse of the Granite funds, readers will learn not only about the success but also about the excesses and failures that typically accompany the development of any product in the real or financial sector.

Emerging Capital Markets and Globalization

Author : Augusto de la Torre
Publisher : World Bank Publications
ISBN 13 : 0821365444
Total Pages : 232 pages
Book Rating : 4.8/5 (213 download)

DOWNLOAD NOW!

Book Synopsis Emerging Capital Markets and Globalization by : Augusto de la Torre

Download or read book Emerging Capital Markets and Globalization written by Augusto de la Torre and published by World Bank Publications. This book was released on 2006-10-20 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.