What caused the flood of securitized products in the years immediately preceding the crisis? This paper presents evidence that demand for safe collateral in repo markets made it attractive for financial institutions to issue securitized products. Using the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) as a natural experiment that shocked the demand for collateral, this p...

We analyze a dynamic market with a seller who can make a one-time investment that affects the returns of tradable assets. The potential buyers of the assets cannot observe the seller’s investment prior to trade, nor verify it in anyway after trade. The market faces two types of inefficiency: the ex-ante inefficiency, i.e., the seller’s moral hazard problem; and the ex-post inefficiency, i.e., i...

We study the e¤ects of securitization on interbank lending competition when banks see private signals of local applicants’ repayment chances. If banks cannot securitize, the outcome is e¢ cient: they lend to their most creditworthy local applicants. With securitization, banks lend also to remote applicants with strong observables in order to lessen the lemons problem they face in selling their ...

From the whole-process perspective, this paper elaborates and analyzes ideal model of evolution process security issues. The for issues is presented as: securitization, de-securitization, re-securitization. Analyzing from a perspective helps to gain comprehensive understanding concept "security" also insight into dynamic development processes

many theorists in the field of security, think, that iran country does not respect the logic of security equations in the region and the world and this political difficulties for countries in the region and even the country have been followed. this article adopt an analytical-explanatory approach intends to main components and performance levels of the islamic republic of iran on the agreed bar...

Reverse mortgages are becoming remarkably popular in the last few years in Australia, and although they have been around a lot longer in the United States, they are receiving renewed interest among the elderly. Increase in life expectancies and decrease in the real income at retirement due to inflation continue to worry the those who are retired or close to retirement. Today, financial products...

This paper sets forth a simple method for estimating the credit risk economic capital associated with securitization exposures, which are defined as credit exposures created by repackaging the cash flows from a pool of assets into various tranches or asset-backed securities. Our approach is motivated by the need for an effective and easily implemented regulatory capital rule for securitization ...

One of the roots of the recent global financial crisis has been seen in the design of subprime mortgage contract leading to high sensitivity of such type of loans to house price changes. The market of subprime loans, especially in the last years preceding the crisis, has been highly financed by securitization. The paper investigates how borrowers with subprime characteristics influence the tran...