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Timothy J. Riddiough. Schuetz, Jenny, 1975- Talle, Laura E. 1973- Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. Massachusetts Institute of Technology. Department of Urban Studies and Planning 2012-04-26T18:41:54Z 2012-04-26T18:41:54Z 2001 2001 http://hdl.handle.net/1721.1/70345 49746003 Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2001. Includes bibliographical references (leaves 59-60). A study was carried out to examine the impacts of risk characteristics on equity pricing of tax credits issued under the Low Income Housing Tax Credit Program (LIHTC). The results indicate that credit pricing is not correlated with most traditional real estate risk factors. We hypothesize that risks are mitigated by the services of syndicators, who act as intermediaries between developers and investors, thus managing the perceived risk of the investment. We tested this theory by examining the impact of individual syndicators on credit prices. Additionally, we tested the effect of syndicator fees and other syndicator-specific fixed effects on credit prices. Findings suggest that syndicator fixed effects and fees impact pricing, as do certain tax structure characteristics of the LIHTC developments. Developers appear to be less pricesensitive than investors, reflecting perhaps different levels of negotiating power in their relationships with syndicators, as well as lack of perfect information. Investors appear to focus more on internal rate of return than on price per unit of credit in their investment decisions, thereby confusing the relationship between syndicator effects and credit prices for investors. Housing policy implications and directions for future research are also discussed. by Jenny Schuetz and Laura E. Talle. M.C.P. 62 leaves eng Massachusetts Institute of Technology M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 Urban Studies and Planning. The effects of syndicators and risk management on equity pricing of the Low Income Housing Tax Credit Effects of syndicators and risk management on equity pricing of the LIHTC Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="67a78979-5483-4f41-a17c-4f719951bdeb"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>The effects of syndicators and risk management on equity pricing of the Low Income Housing Tax Credit</Title> <Subtitle>Effects of syndicators and risk management on equity pricing of the LIHTC</Subtitle> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2001</PublicationDate> <Authors> <Author> <DisplayName>Schuetz, Jenny, 1975-</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> <Author> <DisplayName>Talle, Laura E. 1973-</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Urban Studies and Planning.</Keyword> <Abstract>A study was carried out to examine the impacts of risk characteristics on equity pricing of tax credits issued under the Low Income Housing Tax Credit Program (LIHTC). The results indicate that credit pricing is not correlated with most traditional real estate risk factors. We hypothesize that risks are mitigated by the services of syndicators, who act as intermediaries between developers and investors, thus managing the perceived risk of the investment. We tested this theory by examining the impact of individual syndicators on credit prices. Additionally, we tested the effect of syndicator fees and other syndicator-specific fixed effects on credit prices. Findings suggest that syndicator fixed effects and fees impact pricing, as do certain tax structure characteristics of the LIHTC developments. Developers appear to be less pricesensitive than investors, reflecting perhaps different levels of negotiating power in their relationships with syndicators, as well as lack of perfect information. Investors appear to focus more on internal rate of return than on price per unit of credit in their investment decisions, thereby confusing the relationship between syndicator effects and credit prices for investors. Housing policy implications and directions for future research are also discussed.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>