Browsing Sloan School of Management by Subject "Real Estate"

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    • Systemic Risk and the Refinancing Ratchet Effect 

      Khandani, Amir; Lo, Andrew W.; Merton, Robert C. (Cambridge, MA; Alfred P. Sloan School of Management, Massachusetts Institute of Technology, 2009-09-13)
      The confluence of three trends in the U.S. residential housing market - rising home prices, declining interest rates, and near-frictionless refinancing opportunities - led to vastly increased systemic risk in the financial ...