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...

Provides an overview of car-title lending and its impact on U.S. households. Car-title lending — making expensive loans secured by the title of a vehicle a borrower owns outright — has become a multi-billion dollar industry in the U.S. over the last decade. CRL estimates that car-title...

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 paper uses a real-options model of a farming operation to show how standard loan contracts create incentives for farmers to focus on short-term financial performance at the expense of the farm's long-term natural capital. These incentives are a manifestation of the debt overhang problem....