The following descriptive paper surveys the various types of loan securitisation and provides a working definition of so-called collateralised loan obligations (CLOs). Free of the common rhetoric and slogans, which sometimes substitute for understanding of the complex nature of structured...

Asset-backed securitization (ABS) may contribute to generating instability in financial markets both through an 'inside effect' in the banking system – facilitating progressive deterioration of bank assets' quality – and through an ‘outside effect' – favoring credit risk transfer from...

Servicers are less likely to renegotiate delinquent loans in residential MBS pools that are more deeply tranched. A one standard deviation increase in tranching corresponds to a 14 percent decrease in loan modification relative to the mean. In highly tranched pools, servicers pursue fewer...

This study delves into the impact of technological bank innovations on small and medium-sized enterprise (SME) borrowing across the European Union. By analyzing a comprehensive dataset of 179,921 SME-bank lending relationships from 2009 to 2019, we explore the mechanisms through which...

Credit institutions are to an increasing extent using Contingent Convertible Bonds (CoCos) to meet part of their capital requirements, which could suggest that the market for CoCos contains useful information on the robustness of the issuer. This paper gives a thorough introduction to CoCos -...

Stress tests have become an important component of the supervisory toolkit. However, the extent of disclosure of stress-test results remains controversial. We argue that while stress tests uncover unique information to outsiders — because banks operate in second--best environments with...

Credit institutions are to an increasing extent using Contingent Convertible Bonds (CoCos) to meet part of their capital requirements, which could suggest that the market for CoCos contains useful information on the robustness of the issuer. This paper gives a thorough introduction to CoCos -...

This study delves into the impact of technological bank innovations on small and medium-sized enterprise (SME) borrowing across the European Union. By analyzing a comprehensive dataset of 179,921 SME-bank lending relationships from 2009 to 2019, we explore the mechanisms through which...