Recent trends in commercial bank loan sales
The dollar volume of commercial bank loan sales rose rapidly in the mid-1980s but has declined equally rapidly over the past few years. This article provides insight into these loan sales trends by looking beyond the aggregate data and separately examining the sales activities of the largest loan sellers and those of all other banks.
Bank loan sales: a new look at the motivations for secondary market activity
Bank lending traditionally involves the extension of credit that is held by the originating bank until maturity. Loan sales allow banks to deviate from this pattern by transferring loans in part or in their entirety from their own books to those of another institution. This paper uses a new methodology to test the validity of two hypotheses regarding banks' motivations for selling and buying loans: (1) the comparative advantage hypothesis, that banks with a comparative advantage in originating loans sell and those with a comparative advantage in funding loans buy, and (2) the diversification ...
Will the securitization revolution spread?
Public policy and the evolution of banking markets
The paradox of loan sales
Why commercial banks sell loans: an empirical analysis
The loan asset sales market, what lies ahead?