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We examine the effects of the bankruptcy benefit and adverse events on the consumer bankruptcy decision. Employing zero‐inflated ordered probit models and a unique longitudinal survey of approximately 66,000 individuals in Great Britain, we find that consumers are more likely to enter into bankruptcy proceedings when the bankruptcy benefit increases and when they become unemployed. We find that the effects of adverse events differ across bankruptcy types. Individuals who experience the onset of health problems are more likely to choose reorganization of debts (i.e., income gleaning), whereas individuals who get divorced or separated are more likely to prefer the discharge of debts (i.e., fresh start). We also examine access to credit after bankruptcy. We find that individuals are excluded from the credit markets post‐bankruptcy and the impact differs across bankruptcy types. Credit exclusion for fresh starters is dramatic, swift but short‐lived, while for income gleaners, it is gradual, slow but lasts longer. [ABSTRACT FROM AUTHOR]

We examined the perceived risk of Brexit referendum (BR) in the United Kingdom (UK) securitization market, using 1,021 securitized bonds issued between 2011 and 2018. We find an unexpected negative relationship between the BR outcome and the initial yield spreads of asset-backed securities (ABS), even after accounting for the downward-adjusted credit ratings in the post-BR period. We do not observe this effect on mortgage-backed securities (MBS). Our findings imply that investors diversified into ABS bonds under uncertainty in the post-BR period. [ABSTRACT FROM AUTHOR]

We employ the propensity score matching approach to investigate household access to mortgages in the UK using information on 29,732 households between 2003 and 2010. We find that, on average, the probability of obtaining a mortgage is similar for White and Non-White households. However, we find that Black households with low incomes are less likely to have mortgages compared to White households with similar characteristics. Asian households, in contrast, do not seem to have a lower probability of having a mortgage. [ABSTRACT FROM AUTHOR]

This paper investigates household access to consumer credit in the UK using information on 58,642 households between 2001 and 2009. Employing a treatment-effects model and propensity score matching, we find that non-white households are less likely to have financing compared to white households. We also find that even if they obtain financing, the intensity of borrowing is lower than for white households. Overall, non-white households seem to be in a weaker position to access consumer credit in the UK. [ABSTRACT FROM PUBLISHER]