We address the moral hazard problem of securitization using a principal-agent model where the investor is the principal … and the lender is the agent. Our model considers structured asset-backed securitization with a credit enhancement … show that the optimal form of retention must be proportional to the pool default loss even in the absence of systemic risk …

. Higher risk exposures increased securitization transaction volumes, which reflects securitization with adverse selection … financial institutions are of concern to the government and regulatory bodies. Consequently, the securitization market in China … securitization might be an effective way to protect against these risks. This paper studies the question of whether China needs a …

contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and … securitization and insurance-linked securities; and the efficiency, distribution, organizational form, and governance of insurance …