Nonrecourse financing and securitization

• Kobayashi, Mami

• 小佐野, 広

抄録

We consider the role of the nonrecourse financing of securitization by a financial institution (FI). Our model suggests that even though the FI has the opportunity to provide liquidity support afterward, it is optimal for the FI to use the nonrecourse financing of securitization initially, because the nonrecourse security makes liquidation of the original asset more attractive for an FI that knows that the original asset is bad. However, our model also predicts that the nonrecourse financing of securitization, together with short-term maturity financing, forces the financial system to perform inefficiently in handling troubled loans and causes problems with inefficient liquidity support and overinvestment under certain conditions, despite the nonrecourse property of securitization. The theoretical results provide empirical implications for recent problems with securitized and structured finance in the United States and Europe.

収録刊行物

• Journal of Financial Intermediation

  Journal of Financial Intermediation 21 (4), 659-693, 2012-10

  Elsevier Inc.

キーワード

• Asset-backed securities
• Financial distress
• Liquidity
• Maturity mismatch
• Structured finance

詳細情報

• CRID: 1050564285693326464
• NII論文ID: 120004920397
• NII書誌ID: AA10773937
• ISSN: 10429573
• HANDLE: 2433/160679
• 本文言語コード: en
• 資料種別: journal article
• データソース種別:
  • IRDB
  • CiNii Articles