Uncovering the value of blockchain applications in the world of finance

This article discusses the benefits of using blockchain in the context of asset-backed security (ABS) issuance: reducing information asymmetry between issuers and investors, reducing yield spread of ABS, disciplining credit rating agencies, increasing the quality of underlying assets, and reducing i...

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Bibliographic Details
Main Author: CHENG, Qiang
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2022
Subjects:
Online Access:https://ink.library.smu.edu.sg/soa_research/2033
https://ink.library.smu.edu.sg/context/soa_research/article/3060/viewcontent/ValueBlockchain_Finance_WFR_av.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:This article discusses the benefits of using blockchain in the context of asset-backed security (ABS) issuance: reducing information asymmetry between issuers and investors, reducing yield spread of ABS, disciplining credit rating agencies, increasing the quality of underlying assets, and reducing issuers’ risk exposure. Such benefits should apply to other blockchain applications in the world of finance.