Journal Article
Credit derivatives: an overview
Mengle, David L. (2007-10)
Arising from financial institutions' need to hedge and diversify credit risk, credit derivatives have now become a major investment tool. Almost all credit derivatives take the form of the credit default swap, which transfers default risk from one party to another. Most credit default swaps were once written on single names, but since 2004 the major impetus to growth and market liquidity has been credit default swaps on indexes. ; This paper examines the mechanics, risks, and market for credit default swaps, provides an overview of pricing and dealers' risk-management role, discusses the ...
Economic Review , Volume 92 , Issue Q4 , Pages 1 - 24

Journal Article
The future of deposit insurance: an analysis of the alternatives
Mengle, David L.; Kuprianov, Anatoli (1989-05)
Deposit insurance, while reducing the threat of bank runs, also lessens bankers incentives to control risks. Reforms of the deposit insurance system are necessary to discourage excessive risk taking such as characterized the recent S&L crisis. The adoption of market value accounting, early closing of failed banks, and exposing uninsured depositors and creditors to lossesall would give bankers less incentives to take excessive risks with insured deposits.
Economic Review , Volume 75 , Issue May , Pages 3-15

Journal Article
Daylight overdrafts and payments system risks
Mengle, David L. (1985-05)
During the last several years, the banking community has become increasingly aware of the risks faced by participants on electronic funds transfer (EFT) networks. Of particular concern have been the volume and incidence of daylight overdrafts on Fedwire and the risk of systemic failure due to the failure of a participant on one of the private EFT networks. In this article, David L. Mengle develops an economic framework for analyzing the risks borne by network participants, and then discusses several alternative risk reduction measures. Mengle argues that, on Fedwire, pricing of daylight ...
Economic Review , Volume 71 , Issue May , Pages 14-27

Journal Article
The discount window
Mengle, David L. (1986-05)
An abstract for this article is not available
Economic Review , Volume 72 , Issue May , Pages 2-10

Working Paper
Logit analysis of the effect of rent control on housing quality
Mengle, David L. (1985)
Rent control is one of the few policy issues on which there is a general agreement among economists. Economic theory predicts, and few economists have tried to dispute, that imposing rent controls on a housing market is likely to lead to rental housing shortages and general deterioration of quality. Even on income distribution grounds, rent control receives poor reviews, since it is generally agreed to be a clumsy and inexact means of helping the poor.
Working Paper , Paper 85-06

Working Paper
The feasibility of market value accounting for commercial banks
Mengle, David L. (1989)
As the severity of the problems facing the federal deposit insurance funds become more obvious, the chorus of support for some form of market value accounting is growing. Proponents cite the benefits of increased disclosure and the discipline such accounting would bring about. Opponents argue that market value accounting is infeasible because it would be too costly and too inaccurate to be worth the effort.
Working Paper , Paper 89-04

Journal Article
A review of bank performance in the Fifth District, 1987
Mengle, David L.; Walter, John R. (1988-07)
Profits at Fifth District commercial banks declined significantly during 1987. But the Fifth District decline pales in comparison with the dramatic fall in profitability for banks in the rest of the nation. Much of the decline in both Fifth District banks and throughout the nation was due to increased loan loss provisions at large banks, mostly against expected losses on Third World loans.
Economic Review , Volume 74 , Issue Jul , Pages 13-18

Journal Article
SIC: Switzerland's new electronic interbank payment system
Vital, Christian; Mengle, David L. (1988-11)
It is an article of faith among American bankers and their regulators that some daylight overdrafts are necessary to the efficient functioning of large-dollar wire transfer systems. But the Swiss have injected an element of doubt by developing a system that does away with daylight overdrafts. Their new system processes a payment only if sufficient clearing funds are on deposit in the sending banks reserve account. If sufficient funds are not available, the payment is held in a queue until covering funds have arrived. Vital and Mengle describe the first eighteen months of the systems operation.
Economic Review , Volume 74 , Issue Nov , Pages 12-27

Journal Article
Behind the money market: clearing and settling money market instruments
Mengle, David L. (1992-09)
When a money market instrument is traded, the clearing and settlement process establishes the change in ownership. Because the process involves both costs and risks, money market participants have developed means of making clearing and settlement more efficient and less risky.
Economic Review , Volume 78 , Issue Sep , Pages 3-11

Journal Article
Intraday credit: risk, value, and pricing
Summers, Bruce J.; Humphrey, David B.; Mengle, David L. (1987-01)
An abstract for this article is not available
Economic Review , Volume 73 , Issue Jan , Pages 3-14