Securitisation, the Financial Crisis and the need for effective risk retention

Akseli, Orkun

doi:10.1017/s1566752912001024

Securitisation, the Financial Crisis and the need for effective risk retention

Akseli, Orkun

Authors

Orkun Akseli

Abstract

Securitisation is an important financing technique. Following the financial crisis, reform activities in relation to pitfalls of securitisation have been underway. Particularly, a significant debate globally raged following the financial crisis about whether risk retention mechanisms before the crisis were effective. The idea is to align the incentives of originators/securitisers and investors in order to prevent the negative impact caused by the originate-to-distribute model. If the effective risk retention and due diligence goals are achieved, securitisation may continue to serve its benefits to investors and the full implementation of the reforms in the EU and the USA will act as deterrent and inject confidence in the markets.

Citation

Akseli, O. (2013). Securitisation, the Financial Crisis and the need for effective risk retention. European Business Organization Law Review, 14(1), 1-27. https://doi.org/10.1017/s1566752912001024

Journal Article Type	Article
Publication Date	Mar 1, 2013
Deposit Date	Oct 24, 2012
Publicly Available Date	May 24, 2013
Journal	European Business Organization Law Review
Print ISSN	1566-7529
Electronic ISSN	1741-6205
Publisher	T.M.C Asser Press
Peer Reviewed	Peer Reviewed
Volume	14
Issue	1
Pages	1-27
DOI	https://doi.org/10.1017/s1566752912001024
Keywords	Securitisation, Risk retention, Incentives, IOSCO, Credit Requirements Directive article 122a, SEC Act s.15G.

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Copyright Statement
Copyright © T.M.C. Asser Press and the Authors 2013. This paper has been published in a revised form subsequent to editorial input by Cambridge University Press in 'European business organization law review' (14: 1 (2013) 1-27) http://journals.cambridge.org/action/displayJournal?jid=EBR