Securitization and structured finance

from shadow banking to legal harmonization?

Pierre de Gioia-Carabellese

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Securitizations affect the way a credit institution operates. Alongside structured finance, they allow a bank to free capital and transform risk management. Securitizations allow lenders to refinance a set of loans or assets via their conversion into securities. As the lender organizes a portfolio of its loans in different categories of risk also according to the risk appetite of each investor, the cash flows of the underlying loans represent the returns to the investors. However, structured finance transactions have been identified among the main culprits for the 2008 financial crisis. As such, these transactions may pose a considerable threat to the stability of financial markets. Thus, securitizations, the stereotypical transactions of this kind, have challenged the supervisory authorities, given the dearth of regulation in this area until a decennium ago. Nevertheless, securitization markets are still believed to provide operators with unique opportunities to raise finance through alternative funding and diversified funding sources.
Original languageEnglish
Title of host publicationResearch Handbook on Shadow Banking
Subtitle of host publicationLegal and Regulatory Aspects
EditorsIris H.-Y. Chiu, Iain G. MacNeil
PublisherEdward Elgar Publishing Ltd.
Chapter4
Pages117-160
Number of pages44
ISBN (Electronic)9781785362637
ISBN (Print)9781785362620, 1785362623
DOIs
Publication statusPublished - 25 May 2018

Publication series

NameResearch Handbooks in Financial Law Series
PublisherEdward Elgar Publishing Ltd.

Fingerprint

Securitization
Finance
Harmonization
Shadow banking system
Loans
Funding
Investors
Authority
Risk management
Cash flow
Operator
Threat
Assets
Credit
Financial crisis
Risk appetite
Financial markets

Cite this

Gioia-Carabellese, P. D. (2018). Securitization and structured finance: from shadow banking to legal harmonization? In I. H-Y. Chiu, & I. G. MacNeil (Eds.), Research Handbook on Shadow Banking: Legal and Regulatory Aspects (pp. 117-160). (Research Handbooks in Financial Law Series). Edward Elgar Publishing Ltd.. https://doi.org/10.4337/9781785362637.00012
Gioia-Carabellese, Pierre de. / Securitization and structured finance : from shadow banking to legal harmonization?. Research Handbook on Shadow Banking: Legal and Regulatory Aspects. editor / Iris H.-Y. Chiu ; Iain G. MacNeil. Edward Elgar Publishing Ltd., 2018. pp. 117-160 (Research Handbooks in Financial Law Series).
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Gioia-Carabellese, PD 2018, Securitization and structured finance: from shadow banking to legal harmonization? in IH-Y Chiu & IG MacNeil (eds), Research Handbook on Shadow Banking: Legal and Regulatory Aspects. Research Handbooks in Financial Law Series, Edward Elgar Publishing Ltd., pp. 117-160. https://doi.org/10.4337/9781785362637.00012

Securitization and structured finance : from shadow banking to legal harmonization? / Gioia-Carabellese, Pierre de.

Research Handbook on Shadow Banking: Legal and Regulatory Aspects. ed. / Iris H.-Y. Chiu; Iain G. MacNeil. Edward Elgar Publishing Ltd., 2018. p. 117-160 (Research Handbooks in Financial Law Series).

Research output: Chapter in Book/Report/Conference proceedingChapter

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Gioia-Carabellese PD. Securitization and structured finance: from shadow banking to legal harmonization? In Chiu IH-Y, MacNeil IG, editors, Research Handbook on Shadow Banking: Legal and Regulatory Aspects. Edward Elgar Publishing Ltd. 2018. p. 117-160. (Research Handbooks in Financial Law Series). https://doi.org/10.4337/9781785362637.00012