Reforming Housing Finance: Perspectives from Denmark

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

Reforming Housing Finance : Perspectives from Denmark. / Willemann, Søren; Svenstrup, Mikkel.

In: Journal of Real Estate Research, Vol. 28, No. 2, 2006, p. 105-129.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Willemann, S & Svenstrup, M 2006, 'Reforming Housing Finance: Perspectives from Denmark', Journal of Real Estate Research, vol. 28, no. 2, pp. 105-129.

APA

Willemann, S., & Svenstrup, M. (2006). Reforming Housing Finance: Perspectives from Denmark. Journal of Real Estate Research, 28(2), 105-129.

CBE

Willemann S, Svenstrup M. 2006. Reforming Housing Finance: Perspectives from Denmark. Journal of Real Estate Research. 28(2):105-129.

MLA

Willemann, Søren and Mikkel Svenstrup. "Reforming Housing Finance: Perspectives from Denmark". Journal of Real Estate Research. 2006, 28(2). 105-129.

Vancouver

Willemann S, Svenstrup M. Reforming Housing Finance: Perspectives from Denmark. Journal of Real Estate Research. 2006;28(2):105-129.

Author

Willemann, Søren ; Svenstrup, Mikkel. / Reforming Housing Finance : Perspectives from Denmark. In: Journal of Real Estate Research. 2006 ; Vol. 28, No. 2. pp. 105-129.

Bibtex

@article{9cb9524059c211dbb20b000ea68e967b,
title = "Reforming Housing Finance: Perspectives from Denmark",
abstract = "We investigate the effect of adding a distinct feature of the Danish mortgage market to the US market, namely a buyback option, which enables mortgagors to buy back their share of the mortgage-backed security at market price. Extending a standard referenced pricing-model, we find that the introduction of the buyback option reduces the credit spread required by the financial intermediary with 23{\%}, potentially reducing the contingent liability of the US government. Furthermore, the buyback option protects households against the risk of being locked in after an increase in interest rates. In particular, this could benefit low-to-middle income households.",
author = "S{\o}ren Willemann and Mikkel Svenstrup",
year = "2006",
language = "English",
volume = "28",
pages = "105--129",
journal = "Journal of Real Estate Research",
issn = "0896-5803",
publisher = "American Real Estate Society",
number = "2",

}

RIS

TY - JOUR

T1 - Reforming Housing Finance

T2 - Perspectives from Denmark

AU - Willemann, Søren

AU - Svenstrup, Mikkel

PY - 2006

Y1 - 2006

N2 - We investigate the effect of adding a distinct feature of the Danish mortgage market to the US market, namely a buyback option, which enables mortgagors to buy back their share of the mortgage-backed security at market price. Extending a standard referenced pricing-model, we find that the introduction of the buyback option reduces the credit spread required by the financial intermediary with 23%, potentially reducing the contingent liability of the US government. Furthermore, the buyback option protects households against the risk of being locked in after an increase in interest rates. In particular, this could benefit low-to-middle income households.

AB - We investigate the effect of adding a distinct feature of the Danish mortgage market to the US market, namely a buyback option, which enables mortgagors to buy back their share of the mortgage-backed security at market price. Extending a standard referenced pricing-model, we find that the introduction of the buyback option reduces the credit spread required by the financial intermediary with 23%, potentially reducing the contingent liability of the US government. Furthermore, the buyback option protects households against the risk of being locked in after an increase in interest rates. In particular, this could benefit low-to-middle income households.

M3 - Journal article

VL - 28

SP - 105

EP - 129

JO - Journal of Real Estate Research

JF - Journal of Real Estate Research

SN - 0896-5803

IS - 2

ER -