Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization. …

their securitization decision. We also assess the case for requiring financial institutions to defer bonus pay so as to make … incentives more commensurate with the longer-term risk of their transactions. While mandatory deferred compensation can improve … interaction of financial institutions' internal agency problems with the external agency problem that arises from securitization. …

We examine screening incentives, welfare and the case for mandatory skin-in-the-game. Ex ante banks can screen, using … incentives. Under weaker conditions, banks instead sell the asset in transparent form, using tranching to increase hedging demand … screening incentives than voluntary retentions. In all unregulated market equilibria, interim adverse selection reduces …

We analyze the effect of loan sales on the intensity of costly screening. Loan sales strengthen screening incentives … profitable loans. However, loan sales dampen screening incentives when the benefit of screening primarily helps to weed out …

Banks have been heavily involved in securitization. We study whether the involvedness of a firm’s main bank into … different types of securitization activity -- asset backed securities (ABS) and covered bonds -- influences credit supply before … and during the 2007-8 financial crisis. Both types of securitization allow the bank to generate liquidity. To the extent …

Securitization of LDC debt would significantly aid the international debt problem by increasing liquidity and expanding … the range of investors. Securitization is problematic, however, in large part due to sovereign risks involved. At present …

performance incentives, on behavior of care providers filing applications for providing long-term care services to patients. We … degree of control reduces the number of applications and that introducing performance incentives reduces this even further …