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On the Economics of Securitization: A Framework and Some Lessons from U.S. Experience

dc.contributor.authorVan Order, Robert
dc.date.accessioned2007-07-23T18:27:45Z
dc.date.available2007-07-23T18:27:45Z
dc.date.issued2007-05
dc.identifier1082en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/55302
dc.description.abstractThe paper provides a framework for analyzing the development of securitization as a vehicle for funding loans. Broadly speaking there are two models for funding loans: the portfolio lender model, which typically involves banks or other intermediaries originating and holding the loans and funding them mainly with debt, most often deposits, and the securitization model, which involves tapping bond markets for funds, for instance by pooling loans and selling shares in the pools. A central issue with securitization is that while securities markets are efficient sources of funding, they also involve agency costs because bond market investors are often at an informational disadvantage relative to other traders. The paper discusses alternative structures and tradeoffs among them, and the role of the public policy in securitization.en_US
dc.format.extent135232 bytes
dc.format.mimetypeapplication/pdf
dc.subjectSecuritization, structuring, bond marketsen_US
dc.subject.classificationFinanceen_US
dc.titleOn the Economics of Securitization: A Framework and Some Lessons from U.S. Experienceen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.contributor.affiliationumRoss School of Businessen_US
dc.contributor.affiliationumcampusAnn Arbor
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/55302/1/1082-VanOrder.pdfen_US
dc.owningcollnameBusiness, Stephen M. Ross School of - Working Papers Series


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