Download or read book Essays on Real Estate and Financial Crisis written by and published by . This book was released on 2014 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Impact of Sentiment on Real Estate Investments written by Anna Mathieu and published by Springer. This book was released on 2015-11-05 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: Anna Mathieu clarifies if real estate decisions are affected by investor and consumer sentiment and how severely the sentiment should be considered. With regard to international capital markets Mathieu conducts an analysis of the impact of investor sentiment on the return of the real estate-specific investment vehicle “Real Estate Investment Trust (REIT)” by applying a GARCH-Model. She investigates the effects of investor sentiment on the return and the underlying volatilities of REITs and Non-REITs during the financial crisis. The hypotheses are tested for validity in a GARCH-Model. Parallel to capital markets and thereby in changing from an indirect Real Estate investment perspective to a direct perspective the author conducts an analysis if consumer sentiment impacts the household decision to buy a new home in the US. Therefore a dataset with 385 monthly observations from 1978 to 2010 is tested by a component model.

Download or read book The Essayist Reflections from a Real Estate Survivor written by D. Sidney Potter and published by AuthorHouse. This book was released on 2017-01-16 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: The pathos of the 2008 Great Recession had a fairly wide sweep, from minimum-wage busboys to newspaper heiresses like Veronica Hearst to Federal Reserve chair, Ben Bernanke, whose childhood home was lost as a result of a relative not making timely mortgage paymentswherein all mentioned experienced some type of economic pain, or at least embarrassment, related to the Great Recession. These episodes are captured in this book as a way to bring a slight degree of levity to this economic catastrophe but to also underscore a serious juncture in American social and political theory as well. Author D. Sidney Potter, once a prolific real estate investor in the early to late part of the real estate boom that lead to the bust, puts a spotlight on the real estate finance mortgage industry as once a lucrative insider to now as a disenfranchised member and erstwhile benefactor. The irony of having to make his living as a mortgage operations professional, who now examines the very mortgage financings that once bore his name, does not go past him. His unabrasive and sometimes crude essays examine the usual suspectsfrom bankster CEOs, nascent political movements, and professional legislators to the analytics of mortgage products that resulted in the self-inflicted implosion. Mr. Potters collection of essays acts as a self-entombed time capsule that should be taken as a testimony of fact, not fiction.

Download or read book Three Essays on Financial Institutions and Real Estate written by Robert Deacle and published by . This book was released on 2011 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines several aspects of U.S. financial institutions' real estate-related activity. The first two essays examine the impact of Federal Home Loan Bank (FHLB) membership and funding on bank and thrift holding company (BHC and THC) risk and returns. The first essay uses risk measures derived from BHC and THC stock prices, while the second essay uses risk measures based upon BHC and THC bond prices. The third essay studies the impact of BHC investment in real estate on risk and returns using measures based on stock prices. In the first essay, BHC and THC stock portfolios are formed along several dimensions. Bivariate generalized autoregressive conditional heteroskedasticity (GARCH) models are estimated to produce measures of total risk, market risk, and interest rate risk for the time period from the beginning of 2001 through 2009. Two sets of results related to FHLB activity are obtained. First, FHLB membership is found to be associated with lower total risk and market risk while having no association with interest rate risk. Second, and similarly, greater reliance on FHLB advances is associated with lower total risk and market risk but is not associated with interest rate risk. These results are consistent with the view that the risks created by government backing of the FHLB system and some of the system's policies are mitigated by FHLB policies and products that reduce risk. In addition, THC stocks are found to have lower total and market risk than the portfolio of BHC stocks. The second essay investigates the relationship of both FHLB membership and funding with BHC and THC risk by using the cost of uninsured debt as a measure of risk. These relationships are analyzed in a simultaneous equation regression framework using data from the start of the third quarter of 2002 through the end of the first quarter of 2009. The cost of uninsured debt is proxied by yield spreads calculated from trading data on holding company (HC) bonds. Several interesting results are obtained. Reliance on advances is found to have a negative effect on the cost of debt throughout the sample period (the third quarter of 2002 through the first quarter of 2009). Cost of debt has a significant effect on the level of advances only during the recent financial crisis (the third quarter of 2007 through the first quarter of 2009), when the effect is negative. The negative association between cost of debt and the level of advances suggests that BHCs and THCs, on the whole, do not use FHLB advances to make unusually risky loans and supports the argument that FHLB policies and services have some risk-reducing effects. FHLB membership, independent of advances, is found to have no influence on HC cost of debt. Additional analysis indicates that THC status is associated with higher cost of debt than BHC status. The third essay examines the influence of real estate investment by BHCs from the third quarter of 1990 through the fourth quarter of 2010 on their risks and returns. Portfolios are formed of BHC stocks according to BHCs' ratio of real estate investment to total assets and according to the type of regulation - lenient or strict - under which they invest in real estate. Tests of differences in median portfolio returns between these portfolios are performed. In addition, the effects of real estate investment on risk and return are estimated using univariate GARCH models of portfolio returns. The main results are as follows: 1) BHCs that invest in real estate have greater total risk and lower risk-adjusted returns than those that do not; 2) greater real estate investment is associated with lower returns and greater market risk for some types of BHCs while it is not associated with significant differences in total risk or risk-adjusted returns; and 3) BHCs that invest in real estate under relatively lenient rules have lower returns, greater total risk, and lower risk-adjusted returns than those that invest in real estate under relatively strict rules. The results indicate that benefits from real estate investment by banks - such as diversification of cash flows, economies of scale and scope, and increased charter value - are outweighed by greater variability of returns and lower returns due to BHCs' lack of expertise in the field. The findings also provide evidence that rules granting banks greater freedom to invest in real estate result in increased risk but not increased returns.

Download or read book Three Essays on Corporate Liquidity Financial Crisis and Real Estate written by Kimberly Fowler Luchtenberg and published by . This book was released on 2013 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Real Estate Finance written by Sheharyar Javaid Bokhari and published by . This book was released on 2012 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is a collection of three essays in real estate finance. In the first essay, we observe that between 1985 and 2007, the share of household mortgage debt as a proportion of the total value of housing in the US increased substantially from 30% to an all-time high of 50%. With the decline in house prices, these high levels of leverage increased the propensity at which households defaulted. We examine household decisions on mortgage leverage using new extensive loan-level data from Fannie Mae over the sample period 1986 to 2010. We conceptualize a market for leverage per se and develop a theory of leverage demand-and-supply. Empirically, we estimate an interest rate elasticity of leverage demand of -0.37 or, equivalently, a movement along the demand curve from an r-LTV pair of (10%, 72%) to that of (5%, 85%). We find that leverage demand was cyclical and responsive to economic events but without a general trend. By contrast, leverage supply shifts in the form of lower mortgage interest rates were concurrently associated with higher average loan-to-value ratios. We find that in MSAs with higher house prices, households borrowed more and bought equally more expensive houses. That left leverage unchanged but raised households' risk of illiquidity by increasing their loan-to-income ratios. In MSAs with high house price volatility, we find that both leverage demand and supply were lower. We also identify that younger, poorer and less credit-worthy borrowers demand more leverage than their counterparts. In the second essay, co-authored with David Geltner, we document that loss aversion behavior plays a major role in the pricing of commercial properties, and it varies both across the type of market participants and across the cycle. We find that sophisticated and more experienced investors are at least as loss averse as their counterparts and that loss aversion operated most strongly during the cycle peak in 2007. We also document a possible anchoring effect of the asking price in influencing buyer valuation and subsequent transaction price. We demonstrate the importance of behavioral phenomena in constructing hedonic price indices, and we find that the impact of loss aversion is attenuated at the aggregate market level. This suggests that the pricing and volume cycle during 2001 - 2009 was little affected by loss aversion. In the third essay, also co-authored with David Geltner, we present a technique to address the problem of data scarcity in the construction of high-frequency real estate price indexes. We introduce a two-stage frequency conversion procedure, by first estimating lower-frequency indexes staggered in time, and then applying a generalized inverse estimator to convert from lower to higher frequency return series. The two-stage procedure can improve the accuracy of high-frequency indexes in scarce data environments. The method is demonstrated and analyzed by application to empirical commercial property repeat-sales data.

Download or read book Essays on Transparency Systemic Risk and Liquidity in Real Estate Markets written by Daniel Ruf and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays on transparency, systemic risk, and liquidity in real estate markets. The first essay proposes a benchmark portfolio that contains property markets with a higher level of pre-trade transparency to assess expected returns in opaque commercial real estate markets. We find empirical evidence of abnormal returns in opaque markets relative to the benchmark portfolio. Based on pre-trade transparency, we test for information-based co-movements between transparent and less transparent property markets. Revealed post-trade information of how changes in macroeconomic fundamentals affect the valuation of commercial real estate in transparent markets leads to spillover effects to less transparent markets. We also test for learning externalities from the benchmark portfolio to opaque markets. These externalities can be related to different learning-based investment strategies such as cultural familiarity or information advantages from specializing in opaque markets. The second essay analyzes systemic risk in financial center office markets. Based on the expected capital shortfall of financial institutions, we compute the total systemic risk in the banking sector of financial centers. We show that cross-sectional dependence and return co-movements among financial center office markets arise due to the systemic banking sector risk during financial turmoil periods. As crisis periods, we use the dotcom bubble burst in 2001 and the recent financial crisis 2007/2008. Exploiting spatial econometrics, we test for return co-movements among office markets during normal times as a placebo test and among counterfactual retail markets. We also show that the decline in office market returns during financial turmoil is larger in financial centers compared to non-financial centers. The last essay analyzes the impact of nearby located urban agglomeration centers on local rental housing market liquidity. The empirical.

Download or read book Essays in Real Estate written by Steven Stelk and published by . This book was released on 2013 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study exploits the recent financial crises as a unique natural experiment to examine relationships in residential real estate brokerage and real estate investment through three essays. The first essay examines the impact of agency disclosure on residential restate transactions in the post-financial crises period and extends the literature with three key findings. First, the overall proportion of buyers that report receipt of agency disclosure has not improved since previous studies were completed. Second, there is no evidence that buyers who do not report receipt of agency disclosure pay different prices for homes than buyers who do report receiving agency disclosure. Finally, there is evidence that the timing of agency disclosure matters. Among buyers that do receive agency disclosure, those receiving disclosure at a time other than the first contact with a broker are associated with 3.2% higher home prices. The results demonstrate the need for continued improvement in mandatory disclosure statutes. The second essay investigates the real estate brokerage market's impact on home prices in both a seller's market (2006) and a buyer's market (2009). In both years, homes sold with brokerage assistance realized higher prices when compared to homes sold without the aid of a broker, even after controlling for selection bias in the seller's choice to use a broker. This is the first study using a national dataset that finds evidence of price segmentation in the residential real estate market. The findings may be the result of the extreme market conditions housing market participants faced in 2006 and 2009. The third essay examines the impact of REITs on the Value-at-Risk (VaR) of a mixed asset portfolio surrounding the financial crises using a new, more accurate method of estimating VaR, conditional autoregressive value at risk (CAViaR). The more accurate VaR estimates show that adding REITs to the portfolio has no significant impact on VaR until after the financial crises begins in 2006. After 2006, adding REITs to a portfolio of stocks and bonds dramatically increases VaR. The results have significant implications for portfolio selection.

Download or read book Three essays on real estate finance written by Xiaolong Liu and published by Rozenberg Publishers. This book was released on 2010 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Real Estate Economics and Finance written by Wenlan Qian and published by . This book was released on 2008 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Real Estate and Urban Economy written by Sutee Anantsuksomsri and published by . This book was released on 2013 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation aims to demonstrate applications of regional science methodologies to analyze issues in real estate and urban economics in different scales: city, region, and country. The methodologies used in this dissertation include geographic information systems (GIS), spatial econometrics, and computable general equilibrium (CGE) modeling. There are three chapters in this dissertation. The first chapter studies the impact of the new mass transit systems on the land values of residential development in Bangkok, Thailand. GIS and spatial econometrics are used to examine the impacts. The study has found that the proximity to mass transit stations spatially correlates with an increase in the prices of residential land. The benefit of new mass transit stations, however, may not be equally distributed to the residents of Bangkok due to the lack of value capture mechanisms such as a capital gain tax or a property tax. Policy implications on property taxation are also discussed in this study. Chapter two discusses the economic impact of Cornell University on Tompkins County, New York, focusing on the impact of the investment on the new mixed-used development in Collegetown. This study is one of the first attempts to study the economic impact of a university using a CGE model. In addition, the assumption of increasing-returns-to-scale is incorporated into the framework of a small-area CGE model. This extension of the model allows for a more realistic representation of the imperfect competition in the economic simulation. In the last chapter, a financial CGE model is used to investigate the role of real estate investment in the economy of Thailand. This study discusses how the overinvested real estate market can cause the country to be vulnerable to a financial crisis. In addition, the relationship of real estate asset and property markets is incorporated into the model to captures interconnections between production sectors and financial sectors. The macroeconomic and socioeconomic indicators from the model simulation show that moderate investment in real estate sectors can lead to steady economic growth with small impact on income disparity.

Download or read book Housing Markets and the Economy written by Karl E. Case and published by Lincoln Inst of Land Policy. This book was released on 2009 with total page 417 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on the work of Karl "Chip" Case, who is renowned for his scientific contributions to the economics of housing and public policy, this is a must read during a time of restructuring our nation's system of housing finance.

Download or read book Three Essays in Real Estate Finance written by and published by . This book was released on 2013 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is a continuation to a large research agenda investigating how market frictions affect residential and commercial real estate markets and offers a more comprehensive study on two recent observations in U.S.: the foreclosure spillover effect in residential housing market and the increased Real Estate Investment Trusts (REITs) return volatility in commercial real estate market. Central to the concerns about the tremendous foreclosure wave since 2006 is that such incidents may impose negative externalities on neighborhood properties, and on the wider community. A large literature has documented that a foreclosed home depresses neighboring property prices. However, few studies attempt to explain why such a contagion effect exists. Utilizing a novel capital expenditure dataset and an improved test design, I demonstrate that foreclosures spread over through the following channels: (1) individual homeowners cut capital expenditures when home prices fall and the likelihood of foreclosure increases, which results in a lower neighborhood amenity; (2) the reduction in capital expenditure generates a negative externality by providing other homeowners a disincentive to spend money on home improvement; (3) under-investment deteriorates home quality and brings down home prices; and (4) the decline in property prices further worsens the under-investment problem and completes a feedback loop. To understand the exacerbated REITs return volatility, I use the following two new approaches. The first approach investigates the impact of asymmetric transaction costs on return dynamics in public and private real estate markets and validates model propositions with simulation and empirical tests. It proposes that trading volume moving from private market to listed market and more volatile underlying asset value at down time contribute to high volatility. The second approach studies the impact of firm level economic activities, financial leverage and market risk on REITs volatility, using U.S equity REITs data from 1995 to 2009. The findings uncover the following channels for recent increase in REIT return volatility: (1) REITs firms become more leveraged over time; (2) REITs' beta values and market return volatility increase in the crisis; (3) Economic activities, such as cash flow news and discount rate news, positively affect REIT return volatility. Among these factors, increasing beta is the most influential contributor.

Download or read book The Financial Crisis Inquiry Report written by Financial Crisis Inquiry Commission and published by Cosimo, Inc.. This book was released on 2011-05-01 with total page 692 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Download or read book Three Essays in Finance Real Estate and Insurance written by Evgeny Radetskiy and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: There are three essays that comprise this dissertation. In the first essay we investigate how a country's enforcement of insider trading laws affects learning among stock market participants. We measure learning as the speed with which analyst forecast errors decline as the firm matures. We show that analyst forecast errors decline faster with progression in the firm's age (more learning), when insider trading laws are enforced. We find that learning improves and M/B ratios stabilize faster with the enforcement of insider trading laws. These learning effects are more pronounced among countries with stronger regulatory infrastructure. Also, we demonstrate that firms with higher analyst forecast errors and slower rates of learning before the 2008 financial crisis have a significantly higher probability of stock crash. In the second essay, we temporally examine the existence of price premiums for a sample of single family homes in gated residential communities relative to values in comporable non-gated communities in Shelby County, Tennessee. Controling for idiosyncratic attributes, we find that homes in gated communities carry significant price premiums relative to similar homes in non-gated communities. Price premiums are highest for medium size gated communities. Premiums were also evident in higher priced gated communities before 2008 but vanished after the financial crisis. We conclude that price premiums result from net gated community benefits. The third essay develops a risk management proposal for a two-tiered private-public national health insurance plan. Under this plan, private insurers underwrite basic plans and perform most administrative functions. A second-tier, public national health reinsurance plan allows truncated annual losses for private insurers. When private insurers' annual per person claims exceed a pre-specified level, additional claims are undeerwritten by a single payer, public national health reinsurance system. We develop an actuarial approach that considers possible contemporaneous correlation between paid claim frequency and severity and first-order serial correlation. Given a first-tier loss cutoff of $15,000, we demonstrate that premiums are reduced by approximately 60% when compared to current private insurer pure premiums. We suggest that a two-tiered health care system may better provide all citizens health insurance that is more affordable for employers and individuals.

Download or read book How to Deal with Real Estate Booms written by Mr.Pau Rabanal and published by International Monetary Fund. This book was released on 2011-04-01 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified. Then, we offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.

Download or read book Essays in Real Estate Finance and Urban Economics written by Steven James Manson and published by . This book was released on 2001 with total page 466 pages. Available in PDF, EPUB and Kindle. Book excerpt: