The economics of securitization: evidence from the European markets

Detalhes bibliográficos
Autor(a) principal: Pinto, João
Data de Publicação: 2016
Outros Autores: Alves, Paulo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.14/22564
Resumo: This paper surveys the literature examining securitization. Besides describing the economic motivation for the use of securitization, the paper provides details on securitization characteristics and players, presents the recent trends of securitization markets, describes the role played by securitization in the 2007-2008 financial crisis, and compares the financial characteristics of securitization transactions for a large cross-section of ABS, MBS and CDO tranches issued during the 2000-2011 period. Securitization creates value by increasing liquidity, reducing the cost of funding, allowing originators to diversify funding sources, improving originators’ risk management, and allowing originators to benefit from regulatory arbitrage and to improve key financial ratios. However, securitization transactions are complex undertakings, they are expensive to set up, and increase the deadweight transaction costs associated with principalagent and asymmetric information problems when used inappropriately.
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spelling The economics of securitization: evidence from the European marketsSecuritizationStructured financeFinancial crisisUnconventional monetary policiesThis paper surveys the literature examining securitization. Besides describing the economic motivation for the use of securitization, the paper provides details on securitization characteristics and players, presents the recent trends of securitization markets, describes the role played by securitization in the 2007-2008 financial crisis, and compares the financial characteristics of securitization transactions for a large cross-section of ABS, MBS and CDO tranches issued during the 2000-2011 period. Securitization creates value by increasing liquidity, reducing the cost of funding, allowing originators to diversify funding sources, improving originators’ risk management, and allowing originators to benefit from regulatory arbitrage and to improve key financial ratios. However, securitization transactions are complex undertakings, they are expensive to set up, and increase the deadweight transaction costs associated with principalagent and asymmetric information problems when used inappropriately.Veritati - Repositório Institucional da Universidade Católica PortuguesaPinto, JoãoAlves, Paulo2017-07-18T13:51:11Z20162016-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/22564engPINTO, João; ALVES, Paulo - The Economics of Securitization: Evidence from the European Markets. Investment Management and Financial Innovations. ISSN 1812-9358. Vol. 13, n.º 1 (2016), p. 112-1261812-935810.21511/imfi.13(1).2016.10info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-09-06T12:19:36Zoai:repositorio.ucp.pt:10400.14/22564Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-09-06T12:19:36Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The economics of securitization: evidence from the European markets
title The economics of securitization: evidence from the European markets
spellingShingle The economics of securitization: evidence from the European markets
Pinto, João
Securitization
Structured finance
Financial crisis
Unconventional monetary policies
title_short The economics of securitization: evidence from the European markets
title_full The economics of securitization: evidence from the European markets
title_fullStr The economics of securitization: evidence from the European markets
title_full_unstemmed The economics of securitization: evidence from the European markets
title_sort The economics of securitization: evidence from the European markets
author Pinto, João
author_facet Pinto, João
Alves, Paulo
author_role author
author2 Alves, Paulo
author2_role author
dc.contributor.none.fl_str_mv Veritati - Repositório Institucional da Universidade Católica Portuguesa
dc.contributor.author.fl_str_mv Pinto, João
Alves, Paulo
dc.subject.por.fl_str_mv Securitization
Structured finance
Financial crisis
Unconventional monetary policies
topic Securitization
Structured finance
Financial crisis
Unconventional monetary policies
description This paper surveys the literature examining securitization. Besides describing the economic motivation for the use of securitization, the paper provides details on securitization characteristics and players, presents the recent trends of securitization markets, describes the role played by securitization in the 2007-2008 financial crisis, and compares the financial characteristics of securitization transactions for a large cross-section of ABS, MBS and CDO tranches issued during the 2000-2011 period. Securitization creates value by increasing liquidity, reducing the cost of funding, allowing originators to diversify funding sources, improving originators’ risk management, and allowing originators to benefit from regulatory arbitrage and to improve key financial ratios. However, securitization transactions are complex undertakings, they are expensive to set up, and increase the deadweight transaction costs associated with principalagent and asymmetric information problems when used inappropriately.
publishDate 2016
dc.date.none.fl_str_mv 2016
2016-01-01T00:00:00Z
2017-07-18T13:51:11Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.14/22564
url http://hdl.handle.net/10400.14/22564
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv PINTO, João; ALVES, Paulo - The Economics of Securitization: Evidence from the European Markets. Investment Management and Financial Innovations. ISSN 1812-9358. Vol. 13, n.º 1 (2016), p. 112-126
1812-9358
10.21511/imfi.13(1).2016.10
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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