TY  - JOUR
AU  - He,Zhiguo
AU  - Khang,In Gu
AU  - Krishnamurthy,Arvind
TI  - Balance Sheet Adjustments in the 2008 Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15919
PY  - 2010
Y2  - April 2010
UR  - http://www.nber.org/papers/w15919
L1  - http://www.nber.org/papers/w15919.pdf
N1  - Author contact info:
Zhiguo He
University of Chicago
Booth School of Business
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/834-3769
E-Mail: zhiguo.he@chicagobooth.edu

In Gu Khang
Northwestern University
2001 Sheridan Rd, Rm 401
Evanston, IL 60201 U.S.A
E-Mail: i-khang@kellogg.northwestern.edu

Arvind Krishnamurthy
Kellogg School of Management
Northwestern University
2001 Sheridan Road
Evanston, IL 60208
Tel: 847/491-2671
Fax: 847/491-5719
E-Mail: a-krishnamurthy@northwestern.edu
AB  - We measure how securitized assets, including mortgage-backed securities and other asset-backed securities, have shifted across financial institutions over this crisis and how the availability of financing has accommodated such shifts.  Sectors dependent on repo financing – in particular, the hedge fund and broker-dealer sector – have reduced asset holdings, while the commercial banking sector, which has had access to more stable funding sources, has increased asset holdings. The banking sector also increased its leverage dramatically over this crisis. These findings are important to understand the role played by the government during the crisis as well as to understand the factors determining asset prices and liquidity during the crisis.
ER  -