Their analysis focused on loans backed by small and medium-sized enterprises because these loans are especially prone to information asymmetries. The authors found that the transparency gains brought about by European DataWarehouse do indeed have a valuable impact for investors. If affected by the novel transparency regime, securitisation pools performed better with regard to their rates of loss, default, and delinquency.
His paper considers policies that promote diversification versus those that encourage reshoring, and evaluates the robustness of the conclusions to a generalization beyond CES preferences.