Securitization and credit quality in the European market

Alper Kara, David Marques-Ibanez, Steven Ongena

Research output: Contribution to journalArticlepeer-review

16 Citations (Scopus)


We assess the effect of securitization activity on relative credit quality employing a uniquely detailed dataset from the euro-denominated syndicated loan market. We find that at issuance, based on observable characteristics, banks do not seem to select and securitize loans of lower credit quality. Following securitization, the credit quality of borrowers whose loans are securitized deteriorates more than those in the control group. We find that poorer performance by borrowers of securitized loans seems to be connected to banks’ reduced monitoring incentives. Our results are supported by two additional methodologies and robust to controlling for predetermined borrower-lender matching.
Original languageEnglish
Pages (from-to)407-434
Number of pages28
JournalEuropean Financial Management
Issue number2
Early online date13 Jan 2018
Publication statusPublished - 1 Mar 2019


Dive into the research topics of 'Securitization and credit quality in the European market'. Together they form a unique fingerprint.

Cite this