Equilibrium with limited-recourse collateralized loans

Rubén Poblete-Cazenave and Juan Pablo Torres-Martinez

Working Papers from University of Chile, Department of Economics

Abstract: We address a general equilibrium model with limited-recourse collateralized loans. Borrowers are burden to constitute physical collateral guarantees, which are repossessed in case of default and delivered to the associated lenders. In addition, lenders may receive payments over collateral values, since debtor's wealth (physical and financial) can be garnished when commitments are not fully honored. The reimbursement of resources is proportional to the size of claims.

Keywords: Collateralized assets; Bankruptcy, Limited-recourse loans; Equilibrium existence. (search for similar items in EconPapers)
JEL-codes: D52 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2010-07
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Citations: View citations in EconPapers (1)

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Journal Article: Equilibrium with limited-recourse collateralized loans (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:udc:wpaper:wp313

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