Hedges in the warehouse: the banks get trimmed

Adrian D'Silva and Brian Gordon

Chicago Fed Letter, 2008, issue Apr, No 249

Abstract: When banks ?warehouse? loans, that is, hold them temporarily before selling them through securitizations, how do they protect themselves against credit risk? This article examines the effectiveness of hedging strategies in the context of the recent heavy losses in financial markets.

Keywords: Securities; Hedging (Finance) (search for similar items in EconPapers)
Date: 2008
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