Securitization as a response to monetary policy
This paper studies how monetary easing provides incentives for banks to take risk and issue mortgage‐backed securities (MBS) and, because MBS have the “lemon” property, why MBS buyers are willing to purchase high‐risk securities at high prices. Banks need equity to attract deposits. Monetary easing...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
John Wiley & Sons Ltd
2019
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/56186/ |