Securitizations

Some articles on securitizations, securitization:

Glass–Steagall Act - Glass–Steagall Developments From 1935 To 1991 - 1980s and 1990s Bank Product Developments - Securitization, CDOs, and “subprime” Credit
... banks to acquire assets for “sale” through securitizations under what later became termed the “originate to distribute” model of banking ... bank’s power to sell its assets meant a national bank could sell a pool of assets in a securitization, and even distribute the securities that represented the ... courts upheld the OCC’s approval of Security Pacific’s securitization activities, with the Supreme Court refusing in 1990 to review a 1989 Second Circuit decision ...
Motives For Securitization - Disadvantages To Issuer
... Costs Securitizations are expensive due to management and system costs, legal fees, underwriting fees, rating fees and ongoing administration ... An allowance for unforeseen costs is usually essential in securitizations, especially if it is an atypical securitization ... Size limitations Securitizations often require large scale structuring, and thus may not be cost-efficient for small and medium transactions ...
Securitization - Structure - Repayment Structures
... Unlike corporate bonds, most securitizations are amortized, meaning that the principal amount borrowed is paid back gradually over the specified term of the loan ... Fully amortizing securitizations are generally collateralised by fully amortizing assets such as home equity loans, auto loans, and student loans ... only interest payments are made, these securitizations attempt to return principal to investors in a series of defined periodic payments, usually within a year ...
Moral Hazard - Finance
... Many have argued that certain types of mortgage securitization contribute to moral hazard ... Mortgage securitization enables mortgage originators to pass on the risk that the mortgages they originate might default and not hold the mortgages on their balance ... In one kind of mortgage securitization, known as "agency securitizations", default risk is retained by the securitizing agency that buys the mortgages from originators ...