| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5085095 | International Review of Financial Analysis | 2013 | 8 Pages |
Abstract
⺠2/28 and option ARMs are more risky than FRMs. ⺠There is such a high probability of a liquidity shortage for many types of loans. ⺠There is such a high probability of default for many types of loans. ⺠More risk-based capital needs to be allocated to ARMs than to FRMs. ⺠The Basel II rule understates the default risk associated with NMPs.
Related Topics
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Economics and Econometrics
Authors
Che-Chun Lin, Larry J. Prather, Ting-Heng Chu, Jing-Tang Tsay,