The FSB invites academic paper submissions for a session on the topic of the ‘Effects of Financial Reforms on Securitisation Markets’ at the 2023 Annual Meeting of CEBRA. The meeting is jointly organised by the Federal Reserve Bank of New York, Columbia University’s School of International and Public Affairs (Columbia SIPA) and the Leibniz Institute for Financial Research “Sustainable Architecture for Finance in Europe” (SAFE). It will take place in person at the Federal Reserve Bank of New York on 5 July and Columbia SIPA on 6-7 July in New York City, USA.
The 2008 global financial crisis revealed misaligned incentives from securitisation that weakened lending standards in the credit origination process, while opaque securitisation structures hid large amounts of leverage and maturity/liquidity mismatching in their funding and thereby facilitated mispricing of risks by investors.
Since then, a series of national/regional and international reforms have been undertaken to improve disclosures and facilitate standardisation of securitisation; address incentive problems through risk retention requirements (‘skin in the game’) and by enhancing the rating process; and adopting more appropriate capitalisation of banks’ securitisation-related exposures. Securitisation activity decreased significantly following the crisis, but has started to rebound in recent years in some market segments (e.g. collateralised loan obligations), while default risks appear low.
Authors are invited to submit papers that analyse and provide insights on the effects of the post-crisis reforms on the size, structure and functioning of securitisation markets (overall or in specific segments). Of particular interest are papers that examine the extent to which securitisation operates on a sound and sustainable basis and provides an appropriate alignment of incentives between originators/sponsors and investors.
Papers should be submitted via the SAFE website by 10 March 2023.