Securitization and the Global Economy (eBook)

History and Prospects for the Future

Bonnie G. Buchanan (Autor)

eBook Download: PDF

2016
251 Seiten
Palgrave Macmillan US (Verlag)
978-1-137-34287-4 (ISBN)

Infos

This book examines the controversial issue of securitization in a global, historical context. It traces its origins and compares evidence of securitization across countries, linking differences to variations in legal, political, and cultural regimes. By incorporating the history and current status of securitization (including sources of value and risk) with alternative markets and future outlooks for the global market, Buchanan provides an overall assessment of the costs, benefits, and sustainability of securitization in the global economy, particularly in the aftermath of the 2007-2009 financial crisis. The book also offers a roadmap for future research. As financial regulators around the world plan a sweeping overhaul of securitization markets with tough new rules designed to restore market confidence, it is essential to consider the global outlook for securitization.

Bonnie G. Buchanan is the Howard Bosanko Professor of Economics and Finance at the Albers School of Business and Economics, Seattle University, USA. She was previously the George Albers Professor and the Director for the Professional MBA program. Buchanan is the Editor in Chief of the Journal of Risk Finance. 

Inhalt

Preface 6
Acknowledgments 10
Notes 10
Contents 12
List of Figures 13
List of Tables 15
Chapter 1: Securitization and the Way We Live Now 16
1 Introduction 16
2 Financialization 21
3 Securitization 27
3.1 What’s in a Name? 28
3.2 The Securitization Process 30
3.3 Originate-to-Hold (OTH) versus Originate-to-Distribute (OTD) Models 32
3.4 Why Do Institutions Securitize? 35
3.5 The Lemons Problem 36
3.6 Benefits and Costs of Securitization 37
3.7 Mortgage-Backed Securities (MBS) 39
3.8 CDO Securitization 40
3.9 Securitization Performance 41
3.10 Subprime Mortgage Market and Securitization 48
3.10.1 Mini-Case: Carrington Capital Asset Management 49
3.11 The Events of 2007 51
3.11.1 Mini-Case: Northern Rock 53
Notes 55
Appendix 1: Securitization Framework 56
Appendix 2: A MBS Waterfall Structure 57
References 57
Chapter 2: What History Informs Us About Securitization 64
1 The Earliest European Experience 65
2 Sovereign Debt 67
3 Early Attempts at Mortgage Securitization 67
4 The Consolidated Association of Planters of Louisiana—C.A.P.L. 69
5 Dowry Funds and the “Trente demoiselles de Genève” 70
6 Mortgage Financing—The Pfandbriefe 72
7 The Evolution of the US Securitization Market 76
8 Newspaper Coverage of 1880s Market 82
9 US Mortgage Banking Moves into the Twentieth Century 83
10 Beyond the Great Depression 84
Notes 88
References 89
Chapter 3: Beyond Mortgage-Backed Securities 92
1 Introduction 92
2 Accounts Receivables Securitization 96
3 Student Loan Asset-Backed Securitization 98
3.1 Overview of US Student Loan Market 98
3.2 The Rise of Sallie Mae 99
3.3 Student Loan Asset-Backed Securities (SLABs) Market 101
3.4 The Lemons Problem and Capture Theory in Student Loans 103
3.4.1 The Capture Theory 105
3.5 The Current Student Loan Landscape and Sallie Mae 106
4 Intellectual Property Securitization 107
4.1 How IP Securitization of Royalties Works 108
4.2 Mini-Case—Bowie Bonds 109
4.3 Film Securitizations 110
4.4 Brand Name Securitization 112
4.4.1 Mini-Case Sears 112
5 Solar Securitization 113
6 Sovereign Debt Securitization—Greece and the Eurozone 114
6.1 The Greek Securitization Market 116
6.2 What Are the Eurostat Rules for Securitization? 118
6.3 The Eurozone Crisis and Beyond 120
Notes 122
Appendix 1: Timeline of Greek Securitization 123
References 124
Chapter 4: Securitization and Risk Transfer 126
1 Risk Management and Securitization 129
2 Ethics of Risk Transfer: Originate-to-­Distribute Model 131
3 The CDO Market and the Ethics of Risk Transfer 133
4 Securitization Déjà Vu 137
5 Is Every Asset a Suitable Candidate for Securitization? 141
6 Life Insurance Settlements 141
7 Future Flow Securitizations 142
8 Mini-Case from the Global Financial Crisis 144
8.1 GSAMP Trust 2006-S3 144
9 The Financial Crisis and CDO Lawsuits 146
10 Goldman Sachs—The Timberwolf and Point Pleasant CDOs 148
11 What Is in a Name? 150
Notes 151
Appendix 1: Timeline of Events Surrounding Goldman Sachs ABACUS 2007-AC1 152
References 154
Chapter 5: Securitization in Emerging Markets 156
1 Workers’ Remittances Securitization 159
2 Microfinance Securitization 160
3 Securitization in Latin America 162
4 Securitization in Asia 166
5 Securitization in India 169
6 Mini-Case: Securitization in China 170
7 Why Securitization? 170
8 The Securitization Framework in China 172
9 The Early Days of the Chinese Securitization Market 175
10 The Impact of the 2008 Financial Crisis on Chinese Securitization 176
11 Post 2012—The Chinese Securitization Program Is Reinstated 177
12 Some Concluding Thoughts 181
Notes 182
Appendix 1: Chinese Securitization Timeline 184
References 185
Chapter 6: Alternatives to Securitization 187
1 Covered Bonds 187
1.1 What Are Covered Bonds? 189
1.2 Brief History of the German Covered Bond Market 192
1.3 The Covered Bond Market in Denmark 193
1.4 How the Danish Model Works 194
1.5 So Why Has the USA Lagged the European Covered Bond Market? 197
1.6 Current State of Covered Bond Markets 199
2 Islamic Securitization 199
Notes 203
References 203
Chapter 7: Reforming the Global Securitization Market 205
1 US Regulatory Responses to the Global Financial Crisis 209
2 European Reform Plans 217
Notes 231
References 233
Chapter 8: Conclusion 234
Notes 240
References 240
References 241
Index 256

Produkt-Details

• Erscheint lt. Verlag: 29.12.2016
• Zusatzinfo: XVII, 251 p. 42 illus.
• Verlagsort: New York
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: alternative markets • Banking • business • business finance • credit market volatility • Crisis • Economics • economy • Finance • Financial Crisis • Financial History • History • International finance • International Investments • Investments • Management • Real Estate Management • Risk Management • Securities • Structured Finance
• ISBN-10: 1-137-34287-0 / 1137342870
• ISBN-13: 978-1-137-34287-4 / 9781137342874