Using an international panel of 104 countries over the period 1995-2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of...

The existence of public guarantees that are extended in the case of system-wide stress only (“too-many-to-fail”) may distort the relative pricing of risks in the financial system. Studying the market for syndicated loans, we find that banks require lower compensation for aggregate risk than...