Acharya, Viral V.; Schnabl, Philipp; Suarez, Gustavo - National Bureau of Economic Research (NBER) - 2010
We analyze asset-backed commercial paper conduits which played a central role in the early phase of the financial crisis of 2007-09. We document that commercial banks set up conduits to securitize assets while insuring the newly securitized assets using credit guarantees. The credit guarantees...