文章基本信息

标题：A Real Options Approach to Distressed Property Borrower-Lender Reconciliation
本地全文：下载
作者：David J. Moore , Nuriddin Ikromov
期刊名称：Journal of Mathematical Finance
印刷版ISSN：2162-2434
电子版ISSN：2162-2442
出版年度：2015
卷号：05
期号：01
页码：73-81
DOI：10.4236/jmf.2015.51007
语种：English
出版社：Scientific Research Publishing
摘要：We propose a real option framework to value distressed properties and restructure their loans. Our approach reconciles the interests of borrowers and lenders through a constrained optimization model yielding mutually beneficial restructure terms. Borrowers receive lower loan balances and payments, while lenders replace non-performing loans with performing loans that have higher market values. A numerical illustration shows that the market value of a restructured loan can exceed that of the original non-performing loan and the post-foreclosure cash flows when the lender repossesses the property.
关键词：Real Option; Real Estate; Restructure; Distressed Property; Market Value