diversification increases systemic risk. We consider the case of securitization, whereby loan portfolios are sliced into tranches with … different seniority levels. We show that tranching offers nonlinear diversification strategies, which can reduce the failure …

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 …

Gathering fourteen lectures by the pioneers of securitization and by current practitioners--from Freddie Mac, Paine … Webber, JP Morgan, Chrysler, McKinsey & Co., and other major players--A Primer on Securitization introduces readers to … America's newest system of raising capital: what it is, how it operates, and what difference securitization makes. The …