In order to incentivize stronger issuer due diligence effort, European and U.S. authorities are amending securitization-related regu- lations to force issuers to retain an economic interest in the securitization products they issue. This paper contributes to the process by exploring the...

Credit rating agencies face a difficult trade-off between delivering both accurate and stable ratings. In particular, its users have consistently expressed a preference for rating stability, driven by the transactions costs induced by trading when ratings change frequently. Rating agencies...

Credit derivative markets are largely unregulated, but calls are increasingly being made for changes to this "hands off" stance, amidst concerns that they helped to fuel the current financial crisis, or that they could be a cause of the next one. The purpose of this paper is to address two basic...