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 …

credit risk transfer instrument and to increase performance, while European originators focus on regulatory capital arbitrage … and performance improvement. For German banks securitization seems to be an appropriate funding tool. The proposed … understanding for the motivation to originate securitization products is less discovered. Therefor this paper tries to identify main …

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 …

securitization or if they choose vertical slice retention instead of retaining the equity tranche. Moreover, the relevance of credit …

via early warning systems. We analyzed the performance of structured finance ratings and structured finance issuance … theoretical models and a survey of institutions involved in securitization. With the conclusions of this analysis we evaluate the …

. The securitization market dried up because this financial instrument was no longer trusted. At the time, no one thought … securitizations had any future as a financial innovation. However, just three years after the financial meltdown, the securitization …

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