bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

idiosyncratic and aggregate shocks. We focus on the role of securitization, whereby borrowers can reduce idiosyncratic asset risk …, which enables increased leverage and investment. In the absence of frictions in the securitization process, we show that the …

We examine the association between audit quality and the use of collateral in a sample of Chinese firms from 2005 to … 2011. Using the full sample, we document a negative relationship between audit quality and the use of collateral that is … consistent with lenders’ interests. We also show that audit quality and collateral are regarded as alternative means of reducing …

This paper provides new insights into the nature of loan securitization. We analyze the use of collateralized loan … obligation (CLO) transactions by European banks from 1997 to 2004 and try to identify the influence that various firm …-specific and macroeconomic factors may have on an institution's securitization decision. We find that not only regulatory capital …