Duke Eviction Prevention Working Group Follow-up Letter to North Carolina Leaders

The following is a copy of a letter was recently sent to North Carolina Governor, Roy Cooper; North Carolina Senate President Pro Tempore, Phil Berger; and North Carolina House Speaker, Tim Moore. This letter is written to you on behalf of the Eviction Prevention Working Group.  The Working Group was formed under the sponsorship of the […]

Refinancing Inequality during the COVID 19 Pandemic

Mortgage refinancing is one of the main channels through which monetary policy affects the pocketbooks of everyday Americans. When interest rates are sufficiently low, homeowners can refinance their loans, reducing their monthly payment and realizing a substantial reduction in borrowing costs over the life of the loan. The logic behind expansionary monetary policy in this context […]

Financial Regulatory Suspensions and Debt Provision during the Covid-19 crisis

Policymakers and regulators have launched financial relief and rescue programs to promote economic recovery and alleviate household suffering during the COVID-19 pandemic. In doing so, prudential regulation for banks has been adjusted and it remains uncertain if such suspensions are temporary or entail longer-term effects. In our paper ‘Debt Expansion as “Relief and Rescue” at the Time of […]

Unsecured to the Satisfaction

When engaging in 13(3) lending, the Federal Reserve must be “secured to [its] satisfaction,” which it has generally (and reasonably) taken to mean that its ex ante expectation should be that it will be fully repaid.i However, the Fed also interprets the legislative history of 13(3) as suggesting that this standard cannot be met with an entirely unsecured loan—a loan in which the Fed takes no collateral, third-party guarantee, or […]

COVID-19 and The Credit Cycle: Revisited and 2021 Outlook

We are now one year into the global health and economic crisis caused by Covid-19, and its toxic impact on society continues. Before examining the virus’ impact on the credit cycle, it is imperative to first understand where credit markets were prior to this crisis. Analyzing that environment will help us to evaluate the immediate […]

Bankruptcy, Bailout, or Bust: Early Corporate Responses to the Business and Financial Challenges of COVID-19

As the nation grapples with the profound human tragedy of COVID-19, U.S. companies have been feeling the business and economic impacts of the global public health crisis. Many companies have already filed for bankruptcy protection, while others have warned that they may need to liquidate or restructure. Business leaders from a wide range of industries […]

Duke Eviction Prevention Working Group Letter to North Carolina Leaders

The following is a copy of a letter was recently sent to North Carolina Governor, Roy Cooper; North Carolina Senate President Pro Tempore, Phil Berger; and North Carolina House Speaker, Tim Moore. This letter is written to you on behalf of the Eviction Prevention Working Group.  The Working Group was formed under the sponsorship of […]

Climate Change Risk and the Costs of Mortgage Credit

A new challenge: pricing climate risks  In recent remarks, financial regulators across the globe have stressed the importance of understanding the effect of climate risks on the financial system. In a statement released on November 9, 2020, Governor Lael Brainard of the U.S. Federal Reserve stressed the importance of lenders’ abilities to identify and measure the risks posed by climate change. In particular, she emphasizes the importance of moving “from […]

The Pandemic Relief Bill and the Battle Over Federal Reserve Emergency Lending Authority

Negotiations over the just-released $900 billion COVID-19 relief bill got bogged down over the weekend due to the seemingly arcane matter of Federal Reserve emergency lending authority. For the millions of Americans who are in desperate need of financial assistance, this delay was unnecessary and needlessly cruel. Nor were frenzied negotiations around pandemic relief legislation […]

Policy Options for Preventing an Eviction Crisis

There have been several federal and state eviction moratoria since the onset of the COVID-19 pandemic in March. The current binding eviction moratorium is the CDC’s, which was implemented on September 1, 2020 and expires on December 31, 2020. This moratorium was implemented as a public health measure to prevent the spread of COVID-19.  Tenants […]