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The Rise and Fall of Demand for Securitizations
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| Authors and Corporations: | , , , |
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| Other Authors: | Sunderam, Adi [Other] • Hanson, Samuel G. [Other] |
| Type of Resource: | E-Book |
| Language: | English |
| published: | |
| Series: |
NBER working paper series
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| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Summary: | Collateralized debt obligations (CDOs) and private-label mortgage-backed securities (MBS) backed by nonprime loans played a central role in the recent financial crisis. Little is known, however, about the underlying forces that drove investor demand for these securitizations. Using micro-data on insurers' and mutual funds' bond holdings, we find considerable heterogeneity in investor demand for securitizations in the pre-crisis period. We argue that both investor beliefs and incentives help to explain this variation in demand. By contrast, our data paints a more uniform picture of investor behavior in the crisis. Consistent with theories of optimal liquidation, investors largely traded in more liquid securities such as government-guaranteed MBS to meet their liquidity needs during the crisis |
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| Physical Description: | 1 Online-Ressource |
| Type of Resource: |
Mode of access: World Wide Web. System requirements: Adobe [Acrobat] Reader required for PDF files. |
| DOI: | 10.3386/w20777 |
| Access: | Open Access |