Performance & Stability
        
        To What Extent Does Risk Retention Mitigate the Principal-Agent Problem in Securitization?
        
         
        
        
          
        
        
      
        
     
        
        Risk retention mitigates the principal-agent problem by forcing a partial alignment of economic interests.
        
        What Are the Primary Differences between Horizontal and Vertical Risk Retention in Securitization?
        
         
        
        
          
        
        
      
        
     
        
        Vertical retention aligns the sponsor with all investors via a pro-rata slice; horizontal retention concentrates risk in a first-loss piece.
        
        How Do Regulatory Requirements Influence the Adoption of Dual-Tranche Skin-In-The-Game Structures?
        
         
        
        
          
        
        
      
        
     
        
        Regulatory mandates requiring a 5% economic interest directly force the design of dual-tranche structures to signal quality.

 
  
  
  
  
 