This research explores the effects of securitization on the market's perception of banks' risk exposure between 2002 … systematic betas until 2007. We find no evidence of increasing idiosyncratic risk with securitization. We identify significant …

securitization and insurance-linked securities; and the efficiency, distribution, organizational form, and governance of insurance …

the cost of increasing systemic risk. Later, a follow-up study showed that a particular strategy of securitization with … tranches can help avoid this trade-off. We extend the theoretical work on securitization by considering all possible strategies … for securitization with two tranches, by finding their corresponding optimal diversification solutions, and by discussing …