In this paper, we investigate the impact of loan securitization on entrepreneurial activity in the United States. We … first provide evidence that securitization alters the lending strategy for small business by both small and large banks. In … securitization of their loan assets. We also find three potential channels through which banks’ loan securitization contributes to …

We compare the ex ante observable risk characteristics, the default performance, and the pricing of securitized … loans securitized through the government sponsored agencies. We do not find any evidence of differential loan performance …