Template-type: ReDIF-Paper 1.0
Author-Name: Tobias Berg
Author-Name: Daniel Streitz
Author-Name: Michael Wedow 
Title: Real Effects of Securitization
Abstract: We assess the impact of securitization on corporate credit supply and real effects such as investment, sales, and employment. Exploiting the staggered entry of banks in the CLO markets, we document that firms are able to borrow larger amounts after their bank becomes securitization active. The increased use of debt financing increases investment in cash acquisitions as well as firms’ asset, sales, and employment growth. Consistent with a causal effect of securitization, all effects are concentrated in the set of BB/B-rated firms, i.e., firms whose loans are purchased by CLO vehicles. Overall, our results suggest that increased loan supply through securitization can affect real firm outcomes.
Classification-JEL: G21, G23, G31, G32  
Keywords: Securitization, Credit Supply, Real Effects, Collateralized loan obligations (CLOs), Institutional Investors, Syndicated loans 
Length: 45 pages 
Number: 1514
Creation-Date: 2015
File-URL: https://repec.unibocconi.it/baffic/baf/papers/cbafwp1514.pdf
File-Format: application/pdf
File-Size: 1883
Handle: RePEc:baf:cbafwp:cbafwp1514