one of the biggest financial innovations of the last century, securitization is now viewed as a contributory factor to the … crisis. Until recently research has focused on the post-1970s mortgage securitization market. In this paper, I trace the … earlier origins of securitization, from the 12th century Genoese compera through to early 20th century efforts. The historical …

We study optimal securitization in the presence of an initial moral hazard. A financial intermediary creates and then … punishment for defaults, under which investors stop paying the intermediary after the first default. With securitization … contracts optimally designed, we find securitization improves the intermediary's screening incentives. Furthermore, the …

-offs, judgments, and bankruptcies qualify for subprime loans (Hayre, 2001). Securitization is the financial technology that integrates …