Securitization Without Risk Transfer

  title={Securitization Without Risk Transfer},
  author={Viral Acharya and Philipp Schnabl and Gustavo A. Suarez},
  journal={Banking \& Insurance eJournal},
We analyze asset-backed commercial paper conduits, which experienced a shadow-banking "run" and played a central role in the early phase of the financial crisis of 2007-09. We document that commercial banks set up conduits to securitize assets worth $1.3 trillion while insuring the newly securitized assets using explicit guarantees. We show that regulatory arbitrage was the main motive behind setting up conduits: the guarantees were structured so as to reduce regulatory capital requirements… 
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Securitisation and Financial Stability
  • Hyun Song Shin
  • Economics
  • 2009
A widespread opinion before the credit crisis of 2007/8 was that securitisation enhances financial stability by dispersing credit risk. After the credit crisis, securitisation was blamed for allowing
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This paper explores the motivations and desirability of off-balance sheet financing of credit card receivables by banks. We explore three related issues: the degree to which securitizations result in
Credit Card Securitization and Regulatory Arbitrage
This paper explores the motivations and desirability of off-balance sheet financing of credit card receivables by banks. We explore three related issues: the degree to which securitizations result in
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The Panic of 2007-2008 was a run on the sale and repurchase market (the “repo” market), which is a very large, short-term market that provides financing for a wide range of securitization activities
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The headline numbers appear to show that even as banks and financial intermediaries suffered large credit losses in the financial crisis of 2007-09, they raised substantial amounts of new capital,
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During the 1980s, insolvency of individual thrifts and the thrift deposit insurer created severe incentive problems. Lacking cash to close insolvent thrifts, regulators induced nearly $10 billion of
The Shadow Banking System: Implications for Financial Regulation
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  • Business, Economics
  • 2009
The current financial crisis has highlighted the growing importance of the \\"shadow banking system,\\" which grew out of the securitization of assets and the integration of banking with capital
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