Multiple contracts: periodic balloon payments and constant amortization
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As far as it is known, at least in Brazil, the idea of substituting a single contract
by multiple individual contracts, was first presented in Sandrini (2007), later followed in Vieira Sobrinho (2012); both addressing the concept of anatocism (the charge of interest upon interest). Nevertheless, the pioneering work of De-Losso et al. (2013) should be credited as the first to show that, considering its cost of capital, a financial institution may be better off if a single contract is substituted by multiple contracts. With their analysis focusing attention only in the case of constant installments.