Adverse Selection, Reputation and Sudden Collapses in Secondary Loan Markets
---- Acknowledgements -----
We are grateful to Kathy Rolfe for editorial assistance and Hugo Hopenhayn, Roozbeh Hosseini, Larry Jones, Patrick Kehoe, Guido Lorenzoni, Chris Phelan as well as seminar participants at ASU, Kellogg, Yale, the 2009 SED Meeting, New York and Minneapolis Fed, the Conference on Money and Banking at University of Wisconsin, and XII International Workshop in International Economics and Finance in Rio for helpful comments. Chari and Shourideh are grateful to the National Science Foundation for support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis, or the Federal Reserve System, or the views of the National Bureau of Economic Research.