Financial Innovations, Idiosyncratic Risk, and the Joint Evolution of Real and Financial Volatilities by Christina Wang

Financial Innovations, Idiosyncratic Risk, and the Joint Evolution of Real and Financial Volatilities by Christina Wang

Big issues

How might technological change affect bank lending?

Where firms get financing

Where firms get financing (“all ABS” version)

The (first) model

The evidence, part I

The evidence, part II

The evidence, part II

Results from the STBL

Results from the STBL

Results from the STBL: fast growing banks

Results from the STBL: number of loans

What this means for the paper

Final thoughts