Tranching, CDS and Asset Prices: How Financial Innovation Can Cause Bubbles and Crashes

By A. Fostel, John D. Geanakoplos. 2012

170 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9e1da338e02d5d1e42a02b5dcfe02a1c2b015592

Citations in the corpus

• The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “…previously unforeseen risk is similar to Gennaioli, Shleifer, and Vishny’s (2012) assumptions that investors ignore tail risks, as well as the idea of Fostel and Geanakoplos (2012) that financial innovation created new securities whose returns significantly depended on the continuation of…”
• Bubbles, Financial Crises, and Systemic Risk (2012, unknown): “Fostel and Geanakoplos (2012) provide a model in which financial innovation in the form of tranching raises asset prices by increasing the ability of the optimist to take positions in the asset.”
• House Price Beliefs And Mortgage Leverage Choice (2017, unknown): “Our paper contributes to the theoretical literature on collateralized credit with heterogeneous beliefs developed by Geanakoplos (1997, 2003, 2010) and Fostel and Geanakoplos (2008, 2012, 2015, 2016).”