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Full-Text Articles in Business
Term Default, Balloon Risk, And Credit Risk In Commercial Mortgages, Charles C. Tu, Mark Eppli
Term Default, Balloon Risk, And Credit Risk In Commercial Mortgages, Charles C. Tu, Mark Eppli
Finance Faculty Research and Publications
Term default and balloon risk play an interactive role in the pricing of credit risk in commercial mortgages. Most commercial mortgage pricing studies assume a borrower's default decision is based solely on the property value; the mortgage valuation model here also incorporates a property income trigger. The model considers both the risk of default during the term of the loan and the risk of loss at maturity (balloon risk). Monte Carlo simulation analyses reveal that pricing models based solely on property value overestimate the probability of term default and the resulting credit risk premium. Adding a property income default trigger …
A Descriptive Analysis Of U.S. Housing Demand For The 1990s, Mark Eppli, Monty J. Childs
A Descriptive Analysis Of U.S. Housing Demand For The 1990s, Mark Eppli, Monty J. Childs
Finance Faculty Research and Publications
We analyze the effect of changes in type of household formation (i.e., single person, single parent, married couple, etc.) on the demand for housing and segment income by household type to determine housing tenure. Using data disaggregated by household type, we forecast housing demand for the United States through the turn ofthe century. The results indicate that total housing demand for the decade will be 11.8 million units, of which 8.1 million will be owner-occupied and 3.7 million will be renter-occupied.