Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

...

Thursday, June 10th: Zoom Code: 980 0891 3763

TimeSpeakerAffiliationTopic
11:50am - 12:00pmGathering and Introductions

Section 1:  Microstructure of Housing Markets
12:00pm - 1:00pmJia XieCalifornia State University, FullertonMarket Distortions with Collusion of Agents
1:00pm - 2:00pmAnthony Lee ZhangChicago BoothLiquidity in Residential Real Estate Markets
1:00pm - 2:00pmCoffee/Tea Break

Section 2:  Housing and Inequality
2:00pm - 2:30pmYongqiang ChuUniversity of North Carolina, CharlotteThe Color of Hedge Fund Activism
2:30pm - 3:30pmDan
McMillan
McMillenUniversity of Illinois, ChicagoMeasures of Vertical Inequality in Assessments
3:30pm - 4:30pmBreak


Friday, June 11th: Zoom Code: 995 2915 3136

TimeSpeakerAffiliationTitle
10:20am - 10:30amGathering and Introductions

Section 3: Mortgage Market
10:30am - 11:30amHaoyang LiuFederal Reserve Bank of New YorkDefragmenting Markets -  Evidence from Agency MBS
11:30am - 12:30pmYildiray YildirimCity University of New YorkDeep Learning for disentangling Liquidity-constrained and Strategic Default
12:30pm - 1:30pmCoffee/Tea Break

Section 4: Housing Cycle, Financial Stability, Corporate Finance
1:30pm - 2:30pmTimothy McQuadeUniversity of Colorado - BoulderThe 2000s Housing Cycle With 2020 Hindsight - A Neo-Kindlebergerian View
2:30pm - 3:30pmAmiyatosh PurnanandamUniversity of MichiganDid Banks Pay "Fair" Returns to Taxpayers on TARP?
3:30pm - 4:30pmNeng WangColumbia University Leverage Dynamics under Costly Equity Issuance
4:30pm - 4:40pmWrap Up

Speakers:

Anthony Lee Zhang

...

Agency mortgage-backed securities (MBS) issued by Fannie Mae and Freddie Mac have historically traded in separate forward markets. We study the consequences of this fragmentation, showing that market liquidity endogenously concentrated in Fannie Mae MBS, leading to higher issuance and trading volume, lower transaction costs, higher security prices, and a lower primary market cost of capital for Fannie Mae. We then analyze a change in market design—the Single Security Initiative—which consolidated Fannie Mae and Freddie Mac MBS trading into a single market in June 2019. We find that consolidation increased the liquidity and prices of Freddie Mac MBS without measurably reducing liquidity for Fannie Mae; this was in part achieved by aligning characteristics of the underlying MBS pools issued by the two agencies. Prices partially converged prior to the consolidation event, in anticipation of future liquidity. Consolidation increased Freddie Mac’s fee income by enabling it to remove discounts that previously compensated loan sellers for lower liquidity.



Dan

...

McMillen

University of Illinois, Chicago

...