Securitization, Credit Rating and Issuers’ Characteristics
Given the growth of securitization through Credit Receivables Investment Funds (Fundos de Investimento em Direitos Creditórios - FIDCs) in Brazil in recent years, this work aims to investigate empirically the relationship between securitization and credit rating in the Brazilian market. All issues o...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2014-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123032647001 |
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| _version_ | 1825207309315342336 |
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| author | Mauricio Palmada Fernandes Hsia Hua Sheng Mayra Ivanoff Lora |
| author_facet | Mauricio Palmada Fernandes Hsia Hua Sheng Mayra Ivanoff Lora |
| author_sort | Mauricio Palmada Fernandes |
| collection | DOAJ |
| description | Given the growth of securitization through Credit Receivables Investment Funds (Fundos de Investimento em Direitos Creditórios - FIDCs) in Brazil in recent years, this work aims to investigate empirically the relationship between securitization and credit rating in the Brazilian market. All issues of FIDCs held by banks and registered in the CVM from 2005 to July 2010 were analyzed. The two hypotheses discussed by Gorton and Souleles (2005) were confirmed to Brazilian financial institutions. There is evidence of an implied contract between the transferor companies and investors in securitizations made via FIDCs. Companies with higher credit risk, worst ratings, tend to securitize more. However no relationship was found between securitization and asset value, amount of loans or capital ratio. |
| format | Article |
| id | doaj-art-00a968eeab16456d9447cf054919e346 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-00a968eeab16456d9447cf054919e3462025-02-06T23:39:30ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2014-01-01116121Securitization, Credit Rating and Issuers’ CharacteristicsMauricio Palmada FernandesHsia Hua ShengMayra Ivanoff LoraGiven the growth of securitization through Credit Receivables Investment Funds (Fundos de Investimento em Direitos Creditórios - FIDCs) in Brazil in recent years, this work aims to investigate empirically the relationship between securitization and credit rating in the Brazilian market. All issues of FIDCs held by banks and registered in the CVM from 2005 to July 2010 were analyzed. The two hypotheses discussed by Gorton and Souleles (2005) were confirmed to Brazilian financial institutions. There is evidence of an implied contract between the transferor companies and investors in securitizations made via FIDCs. Companies with higher credit risk, worst ratings, tend to securitize more. However no relationship was found between securitization and asset value, amount of loans or capital ratio.http://www.redalyc.org/articulo.oa?id=123032647001securitizationratingimplicit contractfidcsspread |
| spellingShingle | Mauricio Palmada Fernandes Hsia Hua Sheng Mayra Ivanoff Lora Securitization, Credit Rating and Issuers’ Characteristics BBR: Brazilian Business Review securitization rating implicit contract fidcs spread |
| title | Securitization, Credit Rating and Issuers’ Characteristics |
| title_full | Securitization, Credit Rating and Issuers’ Characteristics |
| title_fullStr | Securitization, Credit Rating and Issuers’ Characteristics |
| title_full_unstemmed | Securitization, Credit Rating and Issuers’ Characteristics |
| title_short | Securitization, Credit Rating and Issuers’ Characteristics |
| title_sort | securitization credit rating and issuers characteristics |
| topic | securitization rating implicit contract fidcs spread |
| url | http://www.redalyc.org/articulo.oa?id=123032647001 |
| work_keys_str_mv | AT mauriciopalmadafernandes securitizationcreditratingandissuerscharacteristics AT hsiahuasheng securitizationcreditratingandissuerscharacteristics AT mayraivanofflora securitizationcreditratingandissuerscharacteristics |