Lack of transparency in securitization transactions significantly contributed to the severe financial crisis of … participants at each stage of the securitization process to obtain easily full information about the underlying original risks and … considerably enhance transparency in securitization transactions at the expense of some transaction costs, while reducing the need …

securitization or if they choose vertical slice retention instead of retaining the equity tranche. Moreover, the relevance of credit …Two factors have proven to be strongly relevant for the subprime mortgage crisis. The first is the lack of screening …

-rated tranche. This paper builds a simple model of securitization that accounts for the above retention strategies. Banks in the …Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well … predicted retention strategies match well those found in empirical studies. …

understanding for the motivation to originate securitization products is less discovered. Therefor this paper tries to identify main … to securitize that are in line with observable behavior of market participants. US banks use securitization mainly as … and performance improvement. For German banks securitization seems to be an appropriate funding tool. The proposed …

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 … research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed …

uninformed bank needs an additional screening device. VC fulfils that role. …