examine the dynamic interactions between the real and financial sectors, both with and without securitization, over business … cycle. We find that securitization is expansionary, promotes regulatory arbitrage, increases off-balance-sheet lending under … tighter regimes, amplifies credit risk, and enhances welfare in the steady state. Securitization becomes a prominent tool in …

We investigate the wealth effect of asset securitization in real estate and infrastructure sectors on issuing firms … to securitization issuance records, spanning from 2014 to 2021. Our findings indicate a positive wealth effect for firms … engaged in the asset securitization activities. Our analysis supports the finance hypothesis as an explanation for this wealth …