Do Reputable Issuers Provide Better-Quality Securitizations?

Abstract

This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.

Tranching of debt as legal construction

“…See Gorton & Metrick (2013), p. 50, Bougheas (2014 and . Further on the effects of securitisation on "total risk"; see (discussing the "cliff effects" inherent in securitisation under Basel II rules), Marques-Ibanez (2016) (discussing the effect of monitoring incentives on the credit quality of securitised assets) and Deku et al (2019) p. 6. 8 An overview of Basel accords and related EU legislative acts can be accessed at: https://eba.europa.eu/regulationand-policy/implementing-basel-iii-europe.…”