Asset-Backed Securities

The Economics of StructuredFinance ArXiv ID: ssrn-1287363 “View on arXiv” Authors: Unknown Abstract The essence of structured finance activities is the pooling of economic assets (e.g. loans, bonds, mortgages) and subsequent issuance of a prioritized capital s Keywords: structured finance, asset-backed securities, credit enhancement, tranching, securitized products Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper is conceptually oriented, explaining structured finance mechanics and rating agency fragility through intuitive examples (like a two-asset CDO) rather than dense mathematical derivations. It lacks empirical backtesting or implementation details, focusing instead on a qualitative narrative of the financial crisis. flowchart TD G["Research Goal: Understand Structured Finance Economics"] --> M M["Methodology: Empirical Analysis & Financial Modeling"] --> D D["Data Inputs: ABS, CDOs & Mortgage Data"] --> C C["Computational Processes: Tranching & Risk Assessment"] --> F F["Key Findings/Outcomes: Systemic Risk & Valuation"] --> E E["Conclusion: SSP & Model Complexity Drive Market Dynamics"]