Mortgage Securitization in Asia
Green and his co-authors provide a conceptual basis for the price discovery potential of tradable market instruments and, specifically, for the development of mortgage securitization in Asia. Securitization in Asia, they argue, is particularly important because of its potential role in increasing the transparency of the financial sector of Asian economies. The authors put forth a model explaining how misaligned incentives can lead to bank generated real estate crashes and to macroeconomic instability. They examine the banking sector's performance in Asia compared to securitized real estate returns, in order to provide evidence on the contribution of misaligned incentives. They discuss how the addition of mortgage-backed securities (MBS) helps to inoculate markets from the shocks arising from bank-financed mortgage lending. They conclude with a brief discussion of current MBS markets in Asia.
Asian Studies | Finance
Presented at the 18th NBER-EASE Conference in Singapore, ( 06/2007: 06/2007)
Mariano, Roberto S.; Green, S.; Pavlov, Andrey; and Wachter, Susan M..
Mortgage Securitization in Asia. (2007). Presented at the 18th NBER-EASE Conference in Singapore, ( 06/2007: 06/2007). Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/979