We build a market equilibrium model of loan securitization as an alternative explanation of the cause of the recent … Financial Crisis where there was initially deteriorating loan quality but coupled with aggressive securitization, and later … information (in)accuracy. We show that securitization enhances banks' optimism in the loan market, and being optimistic is …

about the role of liquidity, equity, income levels, and payment burden as determinants of mortgage default using a unique … data set of JPMorgan Chase customers with a Chase mortgage and Chase deposit accounts. Our analysis suggests that liquidity … little post-closing liquidity defaulted at a considerably higher rate than borrowers with at least three mortgage payment …

-term liquidity insurance purposes and for longer-term funding purposes for issuing covered bonds or asset-backed securities. We then … explore the determinants of the choice of using bank loans for short-term liquidity insurance purposes or long-term funding …

This paper discusses whether financial intermediaries can optimally provide liquidity, or whether the government has a … role in creating liquidity by supplying government securities. We discuss a model in which intermediaries optimally manage … liquidity with outside rather than inside liquidity: instead of holding liquid real assets that can be used at will, banks sell …