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How much of a loan should a lender dynamically retain and how does retention affect loan performance? We address these questions in a dynamic agency model in which a lender originates loans that it can sell to investors. The lender reduces default risk through screening at origination and...
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Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization. …
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securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long … origins of the crisis and have important policy implications. - Lending standards ; monetary policy ; securitization ; bank …
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