Dis-Integrating Credit Markets - Diversification, Securitization, and Lending in a Recovery

摘要: Using exogenous variation in exposure to hurricanes, this article explores how differently diversified US banks lend during the protracted recovery from a major downturn. Compared banks, local banks:(i) originate higher share of new mortgage and small business loans affected areas, but (ii) sell mortgages into secondary market. These results suggest pattern specialization, whereby areas are increasingly originated by with special abilities or incentives seize opportunities distressed market, transferred agents which can better support associated risk.