Call For Papers
8th Annual Bank Research Conference: Issues in Securitization and Credit Risk Transfer
Jointly organized by the Federal Deposit Insurance Corporation’s Center for Financial Research and The Journal of Financial Services Research (JFSR)

The FDIC's Center for Financial Research and the JFSR invite submissions for the 8th Annual Fall Research Conference to be held in Arlington, Virginia on Thursday, September 18, and Friday, September 19, 2008.

Until fall 2007, many held a view that securitization and other credit risk transfer instruments diversified bank credit risks and enhanced financial sector stability. By winter 2008, many securitization markets had ceased to function as investor demand for complex credit products evaporated even as central banks lowered risk free rates to stimulate liquidity and blunt the real economic effects of mounting financial sector losses. The 8th Annual FDIC-JFSR conference will provide a forum to discuss the causes and effects of the recent securitization debacle and focus on the following questions. Is credit risk transfer (CRT) a source of systemic instability or is CRT inherently a stabilizing force? Do current events reflect the predictable outcome of correctable flaws in industry and regulatory practices? Was there a widespread failure to anticipate the potential for large financial industry losses? What are the reasons for the breakdown in underwriting standards, market discipline, accounting standards, regulation, and risk measurement and management systems? If so, what policies need to be revisited?

The program committee encourages the submission of papers on topics that include:

• Excess liquidity, asset price bubbles, and financial fragility
• Risk measurement for securitization and credit derivative products
• The role of incentives and incentive pay
• The breakdown in market discipline
• The adequacy of supervision and regulation
• Issues related to special purpose entities, bankruptcy remote status, and reputation risks
• The role and oversight of rating agencies
• The structuring of credit transfer and securitization products
• Counterparty credit risk, liquidity and contagion
• Synthetic credit products, speculative excesses, market pricing and liquidity
• Quantifying the risk of non-deposit sources of bank funding (e.g. securitization)
• The importance and incentives created by public safety nets

The organizers also seek papers related to any of the CFR's research programs:¹

Papers will be selected for presentation based on reviews by associate editors of the JFSR and the organizing committee (Paul Kupiec and Haluk Unal). Selected papers may be invited for JFSR submission. Expenses for travel, food, and lodging will be reimbursed for paper presenters. Papers must be received by June, 30 2008. Authors will be notified about the status of their papers by July 31, 2008. Please submit papers as "pdf" attachments to an email sent to CFR@fdic.gov. Please name the file: "YourLastName.pdf." For additional information, contact Paul Kupiec (202) 898-6768 (pkupiec@fdic.gov) or Haluk Unal (301) 405–2256 (hunal@rhsmith.umd.edu).

¹ See http://www.fdic.gov/bank/analytical/cfr/research.html for additional details on the CFR research programs.