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Towards Formulating a Conceptual Framework

  • Pelma RajapakseEmail author
  • Shanuka Senarath
Chapter

Abstract

After introducing asset securitisation in the first chapter, this chapter moves further to explain asset securitisation and related concepts. This chapter defines asset securitisation and mortgage-backed securities (MBSs) in the first section. The discussion then moves to risks associated with a typical securitisation programme. This chapter engages in a discussion on off-balance sheet financing and financial advantages of asset securitisation while comparing and contrasting the traditional originate-to-hold lending model versus the originate-to-distribute model. White developing a conceptual framework, the “public benefit test”, for the analysis in the rest of the book, this chapter engages in a discussion on rationales behind regulating residential MBS (RMBS) and the need for an optimal regulatory framework for the securities market.

Keywords

MBS Off-balance sheet financing Originate-to-hold Originate-to-distribute Public benefit test Contractarian theory 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Griffith UniversityBrisbaneAustralia
  2. 2.University of ColomboColomboSri Lanka

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