01791cas a2200241 a 4500 AALejournalIMF017234 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475553765 1018-5941 BD-DhAAL BD-DhAAL Marques-Ibanez, David. Securitization and Credit Quality / David Marques-Ibanez. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Banks are usually better informed on the loans they originate than other financial intermediaries. As a result, securitized loans might be of lower credit quality than otherwise similar nonsecuritized loans. We assess the effect of securitization activity on loans' relative credit quality employing a uniquely detailed dataset from the euro-denominated syndicated loan market. We find that, at issuance, banks do not seem to select and securitize loans of lower credit quality. Following securitization, however, the credit quality of borrowers whose loans are securitized deteriorates by more than those in the control group. We find tentative evidence suggesting that poorer performance by securitized loans might be linked to banks' reduced monitoring incentives. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2016/221 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/221/001.2016.issue-221-en.xml IMF e-Library