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Did Securitization Lead to Lax Screening? Evidence from Subprime Loans. SSRN working paper

by Benjamin J. Keys, Tanmoy Mukherjee, Amit Seru, Vikrant Vig, Raghuram Rajan, Adriano Rampini, Steve Schaefer, Robert Vanorder, Annette Vissing-jorgensen, Luigi Zingales , 2008
"... and seminar participants at Duke (Fuqua School of Business) and London Business School for useful discussions. The opinions expressed in the paper are those of the authors and do not reflect the views of Sorin Capital Management. All remaining errors are our responsibility. ..."
Abstract - Cited by 223 (6 self) - Add to MetaCart
and seminar participants at Duke (Fuqua School of Business) and London Business School for useful discussions. The opinions expressed in the paper are those of the authors and do not reflect the views of Sorin Capital Management. All remaining errors are our responsibility.

Securitization and Lending Competition

by David M. Frankel , Yu Jin , 2011
"... We study the effects of securitization on interbank lending competition when banks see private signals of local applicants’ repayment chances. If banks cannot securitize, the outcome is efficient: they lend to their most creditworthy local applicants. With securitization, banks lend also to remote a ..."
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We study the effects of securitization on interbank lending competition when banks see private signals of local applicants’ repayment chances. If banks cannot securitize, the outcome is efficient: they lend to their most creditworthy local applicants. With securitization, banks lend also to remote

Mortgage Securitization and Risk ∗

by Andreas Lehnert, Wayne Passmore, Mortgage Securitization , 2003
"... Securitization is typically seen as a risk-sharing technique; less attention is paid to how risk types affect the equilibrium and optimal secondary market sizes. We use a standard equilibrium model with spatial differentiation to characterize the effects of different risk types on secondary markets ..."
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and ultimate mortgage borrowers. We find that: (1) Market risks (e.g. liquidity and origination risk) increase secondary market trading volume but do not necessarily lead to securitization per se; (2) Idiosyncratic risks (e.g. credit risk) do lead to securitization as well as increasing secondary market volume

On Securitization of International Syndicated Loans

by Jing He
"... Since 80s, along with the heating-up competition in finance industry and the liberalization trend of financial supervision, a tendency of integration appears in world three financial service fields, namely banking, insurance, and security. It threats the banking business. The banking industry that a ..."
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that always possesses the core position in financial system faces enormous challenges. On the other hand, all countries regulate standard rate of interests for commercial banks ’ deposits and loans. Therefore, the margin between banks ’ assets and liabilities is limited, which leads to more fierce competition

1 Securitization and Optimal Retention under Moral Hazard

by Sara Malekan, Georges Dionne , 2012
"... Securitization is one of the most important innovations in financial markets. It is a process of converting illiquid loans that cannot be sold readily to third-party investors into liquid securities and selling them to dispersed investors. As a result, securitization improves liquidity in capital ma ..."
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that is frequently raised in the literature is that securitization leads to moral hazard in lender screening and monitoring. By selling loans to investors and removing them from their books, banks have a lesser incentive to carefully evaluate and monitor borrowers ’ credit quality to ensure that they can repay

Securitized Markets and International Capital Flows

by Gregory Phelan, Alexis Akira Toda , 2015
"... We study the effect of collateralized lending and securitization on international capital flows, growth, and welfare in a two country gen-eral equilibrium model. We find that capital flows from the high- to low-margin country, leading to high investment levels and economic growth in the latter. Desp ..."
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We study the effect of collateralized lending and securitization on international capital flows, growth, and welfare in a two country gen-eral equilibrium model. We find that capital flows from the high- to low-margin country, leading to high investment levels and economic growth in the latter

Securitization and optimal retention under moral hazard. Working paper

by Sara Malekan, Georges Dionne - in HEC Montreal - Department of Finance , 2012
"... Securitization is one of the most important innovations in financial markets. It is a process of converting illiquid loans that cannot be sold readily to third-party investors into liquid securities and selling them to dispersed investors. As a result, securitization improves liquidity in capital ma ..."
Abstract - Cited by 2 (0 self) - Add to MetaCart
that is frequently raised in the literature is that securitization leads to moral hazard in lender screening and monitoring. By selling loans to investors and removing them from their books, banks have a lesser incentive to carefully evaluate and monitor borrowers ’ credit quality to ensure that they can repay

A Macroeconomic Model with a Financial Sector," 41

by Markus K. Brunnermeier, Yuliy Sannikov - Journal of Monetary Economics , 2009
"... This paper studies the full equilibrium dynamics of an economy with financial frictions. Due to highly non-linear amplification effects, the economy is prone to instability and occasionally enters volatile episodes. Risk is endogenous and asset price correlations are high in down turns. In an enviro ..."
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. In an environment of low exogenous risk experts assume higher leverage making the system more prone to systemic volatility spikes- a volatility paradox. Securitization and derivatives contracts leads to better sharing of exogenous risk but to higher endogenous systemic risk. Financial experts may impose a negative

Securitization, Leverage, Tranching, and International Capital Flows

by Gregory Phelan , Alexis Akira Toda
"... Abstract We show that (i) different collateral requirements across countries in securitized markets lead to net international capital flows, and (ii) the ability to tranche asset-backed securities in one country leads to offsetting portfolio flows, creating gross financial flows. We use a general e ..."
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Abstract We show that (i) different collateral requirements across countries in securitized markets lead to net international capital flows, and (ii) the ability to tranche asset-backed securities in one country leads to offsetting portfolio flows, creating gross financial flows. We use a general

Illocutionary logic and strands of securitization: Applying the theory of securitization to the study of non-democratic political orders

by Juha A. Vuori - European Journal of International Relations , 2008
"... Convincing research programmes often use a variety of data from cases in different contexts; in order to reach a wider understanding, the models and hypothesis of securitization studies have to be applied to broad groups of cases. The research programme of securitization studies is formed around the ..."
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the leading idea of securitization being a social process achieved through speech acts. I argue that by explicat-ing the concept of securitization through illocutionary logic, it can be utilized to study security politics in non-democratic contexts in add-ition to the favoured liberal democratic one, where
Results 1 - 10 of 90