Debt collateralization, capital structure, and maximal leverage
Abstract We study the effects of allowing risky debt to be used as collateral in a general equilibrium model with heterogeneous agents and collateralized financial contracts. With debt collateralization, investors switch to using exclusively high-leverage contracts for every investmen...
Main Authors: | Gong, Feixue, Phelan, Gregory |
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Other Authors: | Massachusetts Institute of Technology. Department of Economics |
Format: | Article |
Language: | English |
Published: |
Springer Berlin Heidelberg
2021
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Online Access: | https://hdl.handle.net/1721.1/131408 |
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