We develop a framework to explore the effect of credit ratings on loan origination and securitization. In the model …

bank-specific factors. The purpose of this study is to detect homogeneous credit risk groups by geographical locations … diversified investment strategies by reducing the overall risk of the credit portfolios …

We evaluate lenders' incentives to mitigate credit default risk through pricing or securitisation. Exploiting exogenous … variation in credit default risk created by differences in foreclosure law along US state borders, we find that lenders in the …

We evaluate if lenders price or securitise mortgages to mitigate credit risk. Exploiting exogenous variation in … regional credit risk created by differences in foreclosure law along US state borders, we find that financial institutions … loan guarantees, lenders transfer credit risk using securitisation and do not price credit risk into mortgage contracts. In …

differ greatly between instruments. Our findings have implications for understanding the credit crisis and for policy making … instruments. -- Credit Risk ; Risk Transfer ; Systematic Risk …

for housing, low interest rates, innovations in mortgage lending and securitization, and a breakdown in credit quality …The US financial system is undergoing a painful restructuring as credit losses originating in the mortgage finance … the credit losses, restructure and recapitalize the financial industry, and set the economy on a path to recovery. This …

differ greatly between instruments. Our findings have implications for understanding the credit crisis and for policy making …