Asymmetric Information, Adverse Selection, & Contract Adjustment in the Commercial Mortgage-Backed Securities (Cmbs) Market.

Authors

Samuel Susanin, The College of Wooster

Abstract

The commercial mortgage-backed securities (CMBS) market experienced a massive downturn in conjunction with the U.S. financial collapse of 2007 & 2008. This research will examine the presence of asymmetric information, diminishing due diligence on behalf of the originator, and the eventual subordination of quality of CMBS. The principal-agent model will be implemented to examine the originator (agent) and investor (principal) relationship through various contractual incentives, penalties, and triggers within the CMBS market.

Advisor

Moledina, Amyaz

Department

Business Economics

Recommended Citation

Susanin, Samuel, "Asymmetric Information, Adverse Selection, & Contract Adjustment in the Commercial Mortgage-Backed Securities (Cmbs) Market." (2013). Senior Independent Study Theses. Paper 794.
https://openworks.wooster.edu/independentstudy/794

Disciplines

Economics

Keywords

principal-agent

Publication Date

2013

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis