We study the effects of diverse beliefs on equilibrium securitization under risk neutrality. provide a simple characterization optimal securities. Pooling and tranching assets emerges in as consequence traders' about asset returns. The issuer securities tranches pool, traders sort among according to their beliefs. show how disagreement correlation returns is key factor determining which are poo...

This article shows that the EU has exerted uneven influence within global regime complex in shadow banking. Why? We seek to explain variation EU’s ability exert across different elemental regimes—those on hedge funds and securitization—in broader over time. In regulation, pursued more stringent international rules, no avail. securitization, been successful promoting lenient regulation at level....