We systematically review the recent empirical literature to investigate whether and how
securitization influences bank behaviour and its implication on financial stability. We find …

Recent academic work and policy analysis give insight into the governance problems
exposed by the financial crisis and suggest possible solutions. We begin this paper by …

Analyzing 916 collateralized debt obligations (CDOs), we find that a top credit rating agency
frequently made positive adjustments beyond its main model that amounted to increasingly …

This paper discusses the economic impact of the Basel III reforms to banking regulation. We
find that the long-term impact should be much less than many in the industry fear but the …

This paper investigates the information in corporate credit ratings. If ratings are to be
informative indicators of credit risk, they must reflect what a risk-averse investor cares about …

The leveraged buyout (LBO) boom of 2004 to 2007 was fueled by growth in collateralized
debt obligations (CDOs) and other forms of securitization. Banks active in structured credit …

This paper examines the role of credit rating agencies in the subprime crisis that triggered
the 2007–2008 financial turmoil. We focus on two aspects of ratings that contributed to the …

We present a model in which issuers of asset-backed securities choose to release coarse
information to enhance the liquidity of their primary market, at the cost of reducing secondary …

Practical guidance toward handling the latest changes to the OTC derivatives market Central
Counterparties is a practical guide to central clearing and bilateral margin requirements …

We study the performance of collateralized loan obligations (CLOs) to understand the
market imperfections giving rise to these vehicles and their corresponding economic costs …