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The economics of securitization: evidence from the European markets

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The economics of securitization : evidence from the European markets. / Pinto, João; Alves, Paulo Alexandre.

In: Investment Management and Financial Innovations, Vol. 13, No. 1, 2016, p. 112-126.

Research output: Contribution to journalJournal article

Harvard

Pinto, J & Alves, PA 2016, 'The economics of securitization: evidence from the European markets', Investment Management and Financial Innovations, vol. 13, no. 1, pp. 112-126.

APA

Pinto, J., & Alves, P. A. (2016). The economics of securitization: evidence from the European markets. Investment Management and Financial Innovations, 13(1), 112-126.

Vancouver

Pinto J, Alves PA. The economics of securitization: evidence from the European markets. Investment Management and Financial Innovations. 2016;13(1):112-126.

Author

Pinto, João ; Alves, Paulo Alexandre. / The economics of securitization : evidence from the European markets. In: Investment Management and Financial Innovations. 2016 ; Vol. 13, No. 1. pp. 112-126.

Bibtex

@article{d4bf8bc09ccf453db0393f653382de77,
title = "The economics of securitization: evidence from the European markets",
abstract = "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.",
author = "Jo{\~a}o Pinto and Alves, {Paulo Alexandre}",
year = "2016",
language = "English",
volume = "13",
pages = "112--126",
journal = "Investment Management and Financial Innovations",
issn = "1810-4967",
publisher = "Business Perspectives",
number = "1",

}

RIS

TY - JOUR

T1 - The economics of securitization

T2 - evidence from the European markets

AU - Pinto, João

AU - Alves, Paulo Alexandre

PY - 2016

Y1 - 2016

N2 - 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.

AB - 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.

M3 - Journal article

VL - 13

SP - 112

EP - 126

JO - Investment Management and Financial Innovations

JF - Investment Management and Financial Innovations

SN - 1810-4967

IS - 1

ER -