O. Emre Ergungor

This paper presents a systemic risk measure derived from investor sentiment that has predictive power over future economic activity and market returns.

I use evidence from the Arkansas state archives to provide a description of the events surrounding the default of the state in 1933. I examine the evolution of the negotiations, the outcomes, and the role of fiscal policy.

This paper presents a systemic risk measure derived from investor sentiment that has predictive power over future economic activity and market returns.

Economic theory suggests that bond issuers of lower credit quality or higher opacity should be more likely to issue bonds with premium coupons (higher coupon rates relative to yields at issuance).

States' unfunded pension obligations to their current and retired employees have exploded in recent years to levels that are estimated to be between $750 billion and $4.4 trillion.

States' unfunded pension obligations to their current and retired employees have exploded in recent years to levels that are estimated to be between $750 billion and $4.4 trillion.

We investigate the impact on vacancy rates in Cuyahoga County of federal funds received for acquiring and remediating foreclosed and abandoned properties.

We evaluate the effects of the lending institution and soft information on mortgage loan performance for low-income homebuyers.

This paper examines disclosures by sell-side analysts when their institution has a lending relationship with the firms being covered.

This paper examines the impact of interest-rate and down-payment subsidies on default rates and losses given default, and finds that down-payment subsidies create successful homeowners at a lower cost than interest-rate subsidies.

This paper examines the impact of interest-rate and down-payment subsidies on default rates and losses given default, and finds that down-payment subsidies create successful homeowners at a lower cost than interest-rate subsidies.

Whether mortgages are originated mostly by depository institutions regulated by the Federal agencies or by less-regulated lenders does not seem to affect the foreclosure filing rate in Ohio's counties.

Banks specialize in lending to informationally opaque borrowers by collecting soft information about them. Some researchers claim that this process requires a physical presence in the market to lower information collection costs.

Relationship lending theory suggests that lenders in close proximity to their borrowers might be the most efficient providers of screening and monitoring services, because the cost of collecting information declines with distance.

Seasoned equity offers made by undercapitalized banks (labeled involuntary offers) could be different from other seasoned equity offers because the issuer is presumably under regulatory duress to make up the shortfall in required capital.

Recent research has shown that for industrial and utilities’ seasoned equity offers (SEOs) the offer price discount is informative and has significant price effects.

This paper investigates how the structure of a financial system—whether it is bank or market oriented—affects economic growth.

This paper investigates the performance of community banks as small business (relationship) lenders.

Why are common-law countries market-dominated and civil-law countries bank-dominated? This paper provides an explanation tied to legal traditions.

Why are common-law countries market-dominated and civil-law countries bank-dominated? This paper provides an explanation tied to legal traditions.

Despite the numerous benefits of loan commitments, only 79% of the commercial and industrial loans are made under commitment. I show that two factors limit the use of loan commitments.

This Commentary discusses how a severe fiscal crisis at the state level could impact the interests of the state’s public pension holders. Drawing lessons from the relevant laws, historical precedents, and the case of Arkansas after its default in 1933, I argue that in spite of the protections that exist, no public retirement system is completely immune toimpairment if the money runs out.

The reliability of the term spread as a predictor of future economic activity may have been affected by short-term interest rates being at zero. I enhance a simple model with two variables that should have predictive power for recessions.

One problem low-income communities may face in trying to revitalize is dealing with a high share of residents who are returning home after serving prison terms.

More than 20 years ago Sweden suffered a severe financial crisis that brought unemployment to an all-time high.

ETFs are one of the most successful financial innovations of the last few decades.

Bank branches have been disappearing in some major metropolitan areas, as their populations and economic activity decline.

Knowing whether buying a home is a better financial move for a family than renting requires a consideration of costs and options that people often neglect to factor in. One aspect of the calculation that is almost always overlooked is uncertainty—the fact that no matter how good one’s estimates of the future are, the future can turn out differently than projected. Incorporating uncertainty into the rent-or-buy calculation gives potential homebuyers information that can improve their decisions. While incorporating uncertainty is complicated, it’s made easier with the Cleveland Fed’s online calculator.

Programs that were created to promote homeownership in the United States, like Fannie Mae and Freddie Mac, have been harshly criticized in the wake of the housing crisis.

The current financial crisis is a painful reminder that the developed world is not yet immune to these devastating shocks.

Like the now government-owned Fannie Mae and Freddie Mac, large investment banks helped create funds to financenew mortgages by issuing securities backed by pools of existing mortgages.

The market for student loans may differ in some respects from other financial markets, but private lenders are the primary source of funds. As in other markets, the incentive to lend those funds comes from the ability to make a profit.

As a result of the subprime mortgagemess, prepayment penaltiesare under close scrutiny.

Until recently, homeowners had noway to protect the value of theirhomes against losses that couldresult from housing market downturns.

Once Wal-Mart announced its intention to acquire an industrial loan company, a public furor arose that has brought a lot of attention to a type of institution that has existed for quite some time.

In recent years, there has been increasingpressure on U.S. corporationsto distribute earnings toshareholders in the form of dividends.

Obscure just 20 years ago, the securitization of loan portfolios by private and government-sponsored enterprises is a $5 trillion business today. This Commentary explains why the use of asset-backed securities has grown so spectacularly.

Information problems pervade the economy. This Commentary describes the challenges they create and the clever solutions markets find to overcome them.

In some countries, banks are firms’ key source of financing. In others, firms look mainly to credit markets to meet their financial needs.

This publication is a compilation of research published by the Federal Reserve Bank of Cleveland on housing markets that are experiencing foreclosure and/or a large number of vacant properties, including a policy white paper released May 2013...

Federal Reserve Bank of Cleveland economists examine the many forces that will determine how “great” the most recent recession turns out to be. Find the articles, plus our interview with economic historian Price Fishback, in the fall 2011 issue of Forefront.

The Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 will help regulatory agencies and the Federal Reserve develop rules to protect consumers and curb future financial crises.

In 2009, banks became the reluctant holders of more than 1,500 foreclosed properties in Cuyahoga County, Ohio. Most of these houses are in Cleveland, worth little to nothing, and in danger of remaining vacant for the foreseeable future—destined to define neighborhood decay.