Results 31 - 60 of 441 for PRIME
Moody's Seasoned Aaa Corporate Bond Yield
View the average monthly yields of prime, investment-grade bonds with maturities over 20 years, which can indicate interest rates.
The FOMC in 1990: Onset of Recession - Review
James B. Bullard presents this Review's annual synopsis of the recent actions of the Federal Open Market Committee, the prime policymaking group in the Federal Reserve System.
research.stlouisfed.org/publications/review/1991/05/01/the-fomc-in-1990-onset-of-recession/
What Is Subprime Lending? - Economic Synopses
A precise characterization of subprime lending is elusive. Unlike prime mortgages, subprime mortgages are not homogenous. One suggestion to better identify subprime mortgages is to classify mortgages by the loan-to-value ratio and the borrower's credit score.
research.stlouisfed.org/publications/economic-synopses/2007/06/01/what-is-subprime-lending
A two-stage game depiction of counterterrorism is presented, where the emphasis is on the interaction between the preemptive and defensive measures taken by two targeted countries facing a common threat. The preemptor is likely to be the high-cost defender with the greater foreign interests. A prime-target country may also assume the preemptor role. The analysis identifies key factors – cost comparisons, foreign interests, targeting risks, and domestic terrorism losses – that determine counterterrorism allocations. The study shows that the market failures associated with preemptive and defensive countermeasures may be jointly ameliorated by a disadvantaged defender. Nevertheless, the subgame perfect equilibrium will still be suboptimal owing to a preemption choice that does not fully internalize the externalities.
Do Bank Loan Rates Exhibit a Countercyclical Mark-up? - Working Paper 1997-004
Based on a switching-cost model, we examine empirically the hypotheses that bank loan mark-ups are countercycical and asymmetric in their responsiveness to recessionaly and expansionary impulses. The first econometric model treats changes in the mark-up as a continuous variable. The second treats them as an ordered categorical variable due to the discrete nature of prime rate changes. By allowing the variance to switch over time as a Markov process, we present the first conditionally heteroscedastic discrete choice (ordered probit) model for time-series applications. This feature yields a remarkable improvement in the likelihood function. Specifications that do not account for conditional heteroscedasticity find evidence of both countercyclical and asymmetric mark-up behavior. Incontrast, the heteroscedastic ordered probit finds the mark-up to be countercycical but not significantly asymmetric. We explain why controlling for conditional heteroscedasticity may be important when testing for downward stickiness in loan rates.
Differences in Subprime Loan Pricing Across Races and Neighborhoods - Working Paper 2011-033
We investigate whether race and ethnicity influenced subprime loan pricing during2005, the peak of the subprime mortgage expansion. We combine loan-level data on theperformance of non-prime securitized mortgages with individual- and neighborhood-level data on racial and ethnic characteristics for metropolitan areas in California andFlorida. Using a model of rate determination that accounts for predicted loan performance, we evaluate the differences in subprime mortgage rates in terms of racial andethnic groups and neighborhood characteristics. We find evidence of adverse pricingfor blacks and Hispanics. The evidence of adverse pricing is strongest for purchasemortgages and mortgages originated by non-depository institutions.
The Adminstration of Regulation Q - Review
At a time when market interest rates have soared to levels never before reached in this country, rates on deposits at banks and other financial institutions have been held much lower. The rate commercial banks charge on prime business loans has been 8 1/2 per cent since early last June. Mortgage and many other market interest rates are currently about as high. On the other hand, payment of interest is prohibited on demand deposits, and the maximum rates permitted on time and savings deposits vary between 4.50 and 7.50 per cent. The highest rate applies only to deposits in denominations of $100,000 or more maturing in a year or longer.
research.stlouisfed.org/publications/review/1970/02/01/the-adminstration-of-regulation-q
A Monetary Model of Nominal Income Determination - Review
During the past several years the Federal Reserve Bank of St. Louis has presented a number of empirical studies demonstrating a strong and predictable response of nominal gross national product (GNP) to changes in the nation’s money stock. These studies found that changes in the secular trend of the money stock are the prime determinant of changes in the secular trend of GNP. They also found that short-run changes in GNP are related to similar changes in the money stock. On the other hand, changes in Government spending were found to have only a temporary short-run influence on changes in GNP. A number of other studies, using variations of the approach of the St. Louis studies, have yielded similar empirical relationships.
research.stlouisfed.org/.../review/1975/06/01/a-monetary-model-of-nominal-income-determination
We use a regression discontinuity approach and present new institutional evidence to investigate whether affordable housing policies influenced the market for securitized subprime mortgages. We use merged loan-level data on non-prime mortgages with individual- and neighborhood-level data for California and Florida. We find no evidence that lenders increased subprime originations or altered loan pricing around the discrete eligibility cutoffs for the Government-Sponsored Enterprises'''' (GSEs) affordable housing goals or the Community Reinvestment Act. Although we find evidence that the GSEs bought significant quantities of subprime securities, our results indicate that these purchases were not directly related to affordable housing mandates.
Monetary Policy and Capital Formation - Review
The year 1776 gave birth not only to a great nation but also to a great book which shaped our science. In his Wealth of Nations, Adam Smith made growth in income the central explanandum of his inquiry and identified capital formation as the prime mover of growth in income. It is most fitting, therefore, that the subject matter of this conference in this bicentennial year of the Wealth of Nations is capital formation.
research.stlouisfed.org/publications/review/1977/06/01/monetary-policy-and-capital-formation
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