1. What are five areas of institution-specific FI specialness and which types of institutions are most likely to be the service providers?
2. What events resulted in banks shift from the traditional banking model of originate and hold to a model of originate and distribute?
3. How does the liability maturity structure of a banks balance sheet compare with the maturity structure of the asset portfolio? What risks are created or intensified by these differences?
4. What types of activities are normally classified as off-balance-sheet (OBS) activities? How does an OBS activity move onto the balance sheet as an asset or liability? What are the benefits of OBS activities to a bank? What are the risks of OBS activities to a bank?
5. Why have home equity loans become popular? What are securitized mortgage assets?
6. Why do finance companies face less regulation than do commercial banks? How does this advantage translate into performance advantages? What is the major performance disadvantage?
7. You are encouraged to raise your own questions for discussion as well.