Skin in the game in ABS transactions: A critical review of policy options

Christian Wilde and Jan Krahnen ()

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: This paper finds the current regulation of ABS in Europe and the US to be severely flawed with respect to its key intention: the imposition of a strict loss retention requirement. While nominal retention is always 5%, the true level of loss retention varies dramatically across available retention options. We propose a new risk retention metric RM measuring the level of an issuer’s skin-in-the-game and propose making disclosure of the RM-number compulsory for all ABS transactions.

JEL-codes: G2 (search for similar items in EconPapers)
Date: 2017
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https://www.econstor.eu/bitstream/10419/168296/1/VfS-2017-pid-3622.pdf (application/pdf)

Related works:
Working Paper: Skin-in-the-Game in ABS Transactions: A Critical Review of Policy Options (2018)
Working Paper: Skin-in-the-game in ABS transactions: A critical review of policy options (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168296

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