This paper shows that an increased liquidity of bank assets, paradoxically, increases
banking instability and the externalities associated with banking failures. This is because …

A main cause of the crisis of 2007–2009 is the various ways through which banks have
transferred credit risk in the financial system. We study the systematic risk of banks before …

Banks and other lenders often transfer credit risk to liberate capital for further loan
intermediation. This paper aims to explore the design, prevalence and effectiveness of credit …

Credit derivatives are the latest in a series of innovations that have had a significant impact
on credit markets. Using a micro data set of individual corporate loans, this paper explores …

Credit default swaps (CDS)—the fiercely discussed derivatives instrument since the
explosion of the recent global credit crunch—are still subject to considerable theoretical and …

We use data from 2001-2007 to assess the impact of mortgage and other forms of asset
securitization on the insolvency risk, profitability, and leverage ratios of US bank holding …

This paper examines the relation between the new markets for credit default swaps (CDS)
and banks' pricing of syndicated loans to US corporates. We find that changes in CDS …

We assess the relative effect of securitization activity on banks' lending rates employing a
uniquely detailed dataset from the euro-denominated syndicated loan market. We find that in …

Purpose–Bank securitisation is deemed to have been a major contributing factor to the
2007/2008 financial crises via fuelling credit growth accompanied by lower banks' credit …

We assess the effect of securitization activity on relative credit quality employing a uniquely
detailed dataset from the euro‐denominated syndicated loan market. We find that at …