Plausibly Exogenous [1848] - Safe Collateral (02/23/2025)

LHS Variable
Loan default

RHS Variable
Securitization

Source of Exogenous Variation
Collapse of the CMBS market during 2007-2009

- Black, Krainer, and Nichols (2020), “Safe collateral, arm's-length credit: Evidence from the commercial real estate market”