Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the …

substantially, reflecting a change in the nature of the financial intermediation process. Together with increased securitization of … portfolio of assets, have also become more relevant. As a result, the volume of securitization, although traditionally … associated with credit markets, influences the outcomes of other asset markets. We investigate the link between securitization …

theory model using data on the universe of German multinationals. The empirical analysis largely supports our model in that …

shift profits from low-tax to high-tax jurisdictions. By letting the MNC choose both leverage and the percentage of profit …: i) subsidiaries’ leverage increases with the statutory tax rate, levied in the country where it operates; ii) this … is estimated to raise its subsidiaries’ leverage …

Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well …-rated tranche. This paper builds a simple model of securitization that accounts for the above retention strategies. Banks in the …-risk tranche as collateral in order to take advantage of the yield curve. When variations in loan quality are introduced the …