Why Did U.S. Banks Invest in Highly-Rated Securitization Tranches?
---- Acknowledgements -----
Respectively, assistant professor, Fisher College of Business, Ohio State University, assistant professor, Brigham Young University, and Everett D. Reese Chair of Banking and Monetary Economics, Fisher College of Business, Ohio State University, NBER, and ECGI. We are grateful to John Sedunov for research assistance and to Viral Acharya, Philip Strahan, George Pennachi, and Michael Weisbach for useful comments. René Stulz has been and is involved in compensated activities, including expert testimony, on behalf of large financial institutions related to the securities studied in this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.