We propose a framework under which one can analyze bank's securitization program in terms of firm value, leverage, and dividend payout. Our contributions are two-fold: (1) we provide an easy-to-use measure to see how the proceeds from asset sales are used, in particular focusing on the bank's...

We propose a framework to examine banks’ asset securitization program. It provides a comprehensive view that explains various separate findings and claims in the literature. We derive optimal timing and quantity of banks’ asset securitization by explicitly incorporating stochastic asset...