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http://bura.brunel.ac.uk/handle/2438/28045| Title: | The impact of legal advisor-issuer cooperation on securitization pricing |
| Authors: | Karimov, N Kara, A Downing, G |
| Keywords: | Europe;legal advisors;pricing;securitization |
| Issue Date: | 16-Sep-2021 |
| Publisher: | Wiley on behalf of New York University Salomon Center. |
| Citation: | Karimov, N., Kara, A. and Downing, G. (2022) 'The impact of legal advisor-issuer cooperation on securitization pricing', Financial Markets, Institutions and Instruments, 30 (5), pp. 167 - 199. doi: 10.1111/fmii.12153. |
| Abstract: | We examine the impact of cooperation between legal advisors and issuers on bank securitization pricing using 6,624 European ABS tranches issued in the European market over the period of 1998 to 2018. We find that previous cooperation is negatively related to initial yield spreads of ABS. Investors seem to attach value to previous cooperation between issuers and legal advisors and consider such transactions less risky by asking for lower yields. We observe that the magnitude of the past relationships is also of importance. Moreover, previous cooperation becomes more important as the risk of the transaction increases. This is especially noticeable when prime (AAA rated) tranches are compared to non-prime (non-AAA rated) tranches. Our results also show that the number of legal advisors in a deal does not matter for investors. |
| Description: | Data availability statement: Data is available on request from the authors. |
| URI: | https://bura.brunel.ac.uk/handle/2438/28045 |
| DOI: | https://doi.org/10.1111/fmii.12153 |
| ISSN: | 0963-8008 |
| Other Identifiers: | ORCID iD: Nodirbek Karimov https://orcid.org/0000-0001-8315-1530 ORCID iD: Alper Kara https://orcid.org/0000-0002-8560-0501 ORCID iD: Gareth Downing https://orcid.org/0000-0003-1325-0810 |
| Appears in Collections: | Dept of Economics and Finance Research Papers |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| FullText.pdf | Copyright © 2021 New York University Salomon Center. Published by Wiley. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License (https://creativecommons.org/licenses/by-nc-nd/4.0/), which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. | 417.71 kB | Adobe PDF | View/Open |
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