This paper analyzes the effects of informational asymmetries on screening borrowers. Lenders with access to accurate … credit scores offer the most valuable borrowers lower interest rates than lenders with an advantage in costly screening. This … cream-skimming induces a negative externality, which reduces the value of investing in screening. This distortion translates …

-leveraging and risk-retention problems that flowed through the securitization pipeline and shadow banking system. This article first …, leverage and interest rate risk benefits on their sponsors, resulting in the growth of securitization and the asset …

Lack of transparency in securitization transactions significantly contributed to the severe financial crisis of 2007 … participants at each stage of the securitization process to obtain easily full information about the underlying original risks and … considerably enhance transparency in securitization transactions at the expense of some transaction costs, while reducing the need …

Lack of transparency in securitization transactions significantly contributed to the severe financial crisis of … participants at each stage of the securitization process to obtain easily full information about the underlying original risks and … considerably enhance transparency in securitization transactions at the expense of some transaction costs, while reducing the need …

, securitization and bank risk-taking in a context of the rapid growth in off-balance-sheet activities. The data come from the Canadian … financial sector. Evidence from the 1988-1998 period indicates that: (a) securitization has a negative statistical link with … securitization and bank risk-taking. Profit-risk measure is more sensitive than loss-risk measure to the variation in securitization …