Good growth, bad growth: Market reaction to capital raising for REIT expansion

Mansley, Nick; Wang, Zilong; Weng, Xisheng; Zhang, Wenjing

doi:10.1016/j.irfa.2023.102499

Cited by 6 publications

(2 citation statements)

References 71 publications

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“…Under the deal, JPMorgan agreed to take on $92 billion in deposits, $173 billion in loans and $30 billion in securities from First Concord. The FDIC will provide loss-sharing on the home mortgage and commercial real estate loans and support JPMorgan with about $50 billion in five-year fixed-rate financing [12]. The cost borne by the FDIC is estimated at $13 billion.…”

Section: Consequences Of the Svb Collapsementioning

confidence: 99%

An Study on the Causes and Consequences of the SVB Collapse

Chen

2024

SHS Web Conf.

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This comprehensive study delves into the nuanced causes and repercussions surrounding the failure of Silicon Valley Banks(SVB), scrutinizing both external and internal factors. Internally, the demise is attributed to mismanagement of assets and liabilities, coupled with flaws in the business model. Externally, the Federal Reserve’s interest rate hike and relaxed financial regulations during the Trump era are identified as pivotal triggers. Post-bankruptcy, the rapid acquisition and sale of SVB, First Total Bank, and Signature Bank temporarily alleviate risks within the US banking sector. Regulatory authorities respond by fortifying rules, enhancing industry resilience but simultaneously tightening loan conditions, potentially intensifying economic downturn pressures. Presently, market confidence is on the mend due to regulatory influence, limiting systemic risks. However, the looming 2023 interest rate hike poses a threat, particularly with tight monetary policies. Small and medium-sized US banks, heavily invested in commercial real estate, face heightened vulnerability, potentially precipitating a downward spiral in property prices. Drawing lessons from Lehman Brothers, the study advocates for a balanced approach to monetary policy, emphasizing financial stability, improved risk management by regulators, and ongoing efforts to avert and mitigate future financial crises.

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Section: Consequences Of the Svb Collapsementioning

confidence: 99%

An Study on the Causes and Consequences of the SVB Collapse

Chen

2024

SHS Web Conf.

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“…https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=7bcb9fa44c27 7 Finance researchers have abundantly used the ESM to capture the immediate effect of events that significantly affect stock market returns(Boubaker et al, 2015;Goodell & Huynh, 2020;Jin et al, 2022; Kumari, Kumar, et al, 2023;Mansley et al, 2023;Nerlinger & Utz, 2022;Pandey et al, 2022;Pandey & Kumari, 2021;Rai & Pandey, 2021;Wang et al, 2022). We use a 210-day estimation window ranging from t -215 to t -6 , and an 11-day event window from t -5 to t + 5 (i.e., the event window begins five trading days before the event date and continues till the next five days post-event date).…”

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confidence: 99%