. Recent research has used variation induced by these rules to investigate the connection between securitization and lender … moral hazard problem posed by securitization. …

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 … predicted retention strategies match well those found in empirical studies. -- securitization ; tranching ; credit expansion …

research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … jump in defaults at the cutoff would imply that securitization led to lax screening. We argue instead that originators … that securitization caused lax screening. We examine loan-level data and find that the evidence is inconsistent with the …

; separation portfolios ; treasurer’s portfolios ; financial synthetics ; portfolio management …

bank intermediation for their arbitrage strategies. …

through diversification. In recent years, the development of markets for credit securitization and credit derivatives has … provided new credit risk management tools. However, in the addressed market segment adverse selection and moral hazard problems … are quite severe. A potential successful application of credit securitization and credit derivatives for managing credit …