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centuries. This shift also compromised the role of banks in channeling monetary policy initiatives, and undermined the … that banks resorting to securitisation do not, on average, achieve an unambiguous reduction in their exposure to the term … structure fluctuations. Against this background, banks with very high involvement in the originate-to-distribute market enjoy …
Persistent link: https://www.econbiz.de/10009372586
We build a general equilibrium model of bank competition in which securitization is the banks�optimal choice. A … and Wright (2001). A key feature of the model is that banks face heterogeneous projects and they can use their lending … rate as a tool to compete for good projects. The competition of banks lowers the lending rate, which in turn results in a …
Persistent link: https://www.econbiz.de/10011258629
There is little consensus as to the cause of the housing bubble that precipitated the financial crisis of 2008. Numerous explanations exist: misguided monetary policy; a global savings surplus; government policies encouraging affordable homeownership; irrational consumer expectations of rising...
Persistent link: https://www.econbiz.de/10011261024
The present paper reviews the causes that led to the financial crisis. Unlike other interpretations, this paper does not place main significance on a single source or on a set of causes. I consider all major standpoints highlighted by research and media prior, during and after the financial...
Persistent link: https://www.econbiz.de/10009294924
securitization in which security price together with liquid constraints create the incentive for banks to originate and sell assets …This article analyses the effect of security price on the behaviour of bank securitization. We present a model of bank … backed securities to investors. Banks have a comparative advantage in locating and screening projects within their locality …
Persistent link: https://www.econbiz.de/10009372531
We are neither economists nor academic scholars; however we are students of the markets having experienced the credit crunch on the front lines as institutional investors from a country that is neither in Europe nor is the United States (i.e. Canada). The credit crunch and related “Great...
Persistent link: https://www.econbiz.de/10009418495
By using data from 8 depository institutions in Turkey we evaluate the drivers of securitization between 2004 and 2009 …. Our analysis shows that previous period securitization as well as bank equity, level of profits and asset size are … important factors in a bank’s decision to securitize its loan portfolio. Banks’ on-balance sheet liquidity on the other hand is …
Persistent link: https://www.econbiz.de/10009650018
This paper discusses the causes and the consequences of the financial crisis 2007-2008 with a focus on systemic risk management and the reform of the global financial architecture.
Persistent link: https://www.econbiz.de/10009650029
" borrowers with uncertain future income flows. Currently, we simplify the securitization as a tool to raise capital without cost …
Persistent link: https://www.econbiz.de/10009353531
The Asset Backed CDS contract was introduced in 2005 as an extension of the standard corporate CDS. It generally trades under the ISDA "pay-as-you-go'' (PAUG) confirmation which handles the unique features of ABS - amortization, principal writedowns and interest shortfalls. The current market...
Persistent link: https://www.econbiz.de/10005836359