This thesis consists of three empirical essays on securitization and the resolution of financial distress, examining the information content of prices of mortgage-backed securities, the role of securitization in preventing mortgage renegotiation and the effect of minimum bids in ascending price auctions of repossessed assets. In the first chapter, I present evidence that the prices at originati...

This paper studies the impact of financial innovations on real investment decisions. We model an incomplete market economy comprised of firms, investors and an intermediary. The firms face unique investment opportunities that are not spanned by the securities traded in the financial market, and thus, cannot be priced uniquely using the no-arbitrage principle. The specific innovation we consider...

: Collateralized debt obligatons (CDOs) constitute an important subclass of asset backed securities. The evaluation of CDOs relies on mathematical modeling and on simulation as well as analytic and semi-analytic approaches, depending on the underlying asset pool and the cash flow structure of the transaction. This paper is an introductory survey on CDO modeling. It starts with a ‘mini course’ o...

We investigate the replenishment of 102 asset-backed securities (ABS) backed by more than 1.7 million small- and medium-sized enterprise loans. Based on our extensive data set from 2012 to 2017 obtained first only central loan-level repository for ABS in Europe, we reveal that loans added securitized loan portfolios after transactions' closing perform worse are part initial portfolio. On averag...

The financial architecture prior to the recent crisis was a system of mobile collateral. Safe debt, whether government bonds or privately produced bonds, that is, asset-backed securities, could be traded, posted as collateral, and rehypothecated, moving their highest value use. Since crisis, regulatory changes have aimed make collateral immobile, most notably with BIS liquidity coverage ratio (...

This paper primarily aims at examining the impact of dividend policy on stock price volatility industrial firms listed in Dar es Salaam Stock Exchange employing data collected from audited published financial statements for period 2009–2019. The utilized a panel regression estimation method, and results show that both measures policy—dividend yield payout ratios—have negative significant relati...