Securitization, Structured Finance, and Covered Bonds

Pricing Covered Bonds

Covered bonds1 have emerged as a potentially preferred funding vehicle from the credit crisis, and they were already a major part of many European financial systems. Although some prices are directly available on, for example Bloomberg2, there is no detailed examination of how covered bonds should be priced taking into account the features that make them attractive to investors: i.e. over-colla...

Four Essays on Debt Securitization and Entrepreneurial Finance

Securitization across Borders: Organizational Mimicry in Islamic Finance

This paper discusses the case of securitization in Islamic finance to tease out what is universal and what is specific about this technique. To do this, the paper frames the spatial dispersal of securitization as a form of ‘organizational mimicry’, which highlights that techniques always rely for their functioning on locally rooted ‘cultures of practice’, suggesting that successful transplantat...

What Is Structured Finance?

On the heels of prominent corporate downgrades in the U.S., the haircut unwinding of exposed collateralized debt obligations reverberated in a drumbeat of warnings and mounting regulatory unease about current risk measurement standards of derivatives and their impact on financial stability. The subsequent drumbeat of warnings about probable knock-on effects of leveraged structured claims on fin...

Structured finance, acquisitions and debt agency

Modern corporations use complex debt instruments and pursue acquisitions. In order to analyze the properties of some of these contracts in the event of an acquisition, this paper considers a company that has an incumbent capital structure, comprising one of five practically important structured debt contracts. An opportunity for an acquisition comes along that was not ex-ante contractible. The ...