The Dynamics of the Term Structure of Interest Rates in the United States in Light of the Financial Crisis of 2007-10

2011 ◽  
Author(s):  
Carlos I. Medeiros ◽  
Marco Rodriguez Waldo
Author(s):  
Steven L Schwarcz

Securitisation represents a significant worldwide source of capital market financing. European investors commonly invest in asset-backed securities issued in U.S. securitisation transactions, and vice versa One of the key goals of the European Commission's proposed Capital Markets Union (CMU) is to further facilitate securitisation as a source of capital market financing as a viable alternative to bank-based finance for companies operating in the EU. To that end, this chapter explains securitisation and attempts to put its rise, its decline after the global financial crisis, and its recent CMU-inspired revival into a global perspective. It examines not only securitisation's relationship to the financial crisis but also post-crisis comparative regulatory approaches in the EU and the United States.


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