We investigate whether the securitization of corporate loans affected banks' lending standards. We find that during the boom years of the CLO business, loans sold to CLOs at the time of their origination underperform matched unsecuritized loans originated by the same bank. This finding is robust...

This 2003 Congressional Testimony warns of the dangers of securitizing subprime loans. After defining "predatory lending" and describing the process of securitization, it argues that securitizing subprime loans has many dangers. While some have claimed that securitizing loans lowers loan costs...