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We address the moral hazard problem of securitization using a principal-agent model where the investor is the principal … and the lender is the agent. Our model considers structured asset-backed securitization with a credit enhancement …
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loan guarantees, lenders transfer credit risk using securitization and do not price credit risk into mortgage contracts. In …
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A common practice of banks has been to pool assets of different qualities and then sell a fraction of the newly created portfolios to investors. We extend the signaling model for single sales of risky assets to portfolio sales. We identify conditions under which signaling at the portfolio level...
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through diversification. In recent years, the development of markets for credit securitization and credit derivatives has … are quite severe. A potential successful application of credit securitization and credit derivatives for managing credit …
Persistent link: https://www.econbiz.de/10009768847
This paper empirically analyzes a particular type of notes observed in securitization transactions: combination notes …. Combination notes are formed by combining parts of two or more tranches of securitization transactions, where one part usually …
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