Pre and post subprime mortgage crisis: An empirical analysis in Malaysia

In view of the vast developments that have occurred in financial markets since the introduction of the asset securitization in 1986, it recognizes the importance of developing a comprehensive capital framework for asset securitization, including both traditional forms and synthetic forms of securitization. This research aims to examine the determinant primary market spread. Least square method and regression analysis are applied for the study period 2004–2012. The result shows one determinants in internal regression model influence or contribute to the primary market spread and are statistically significant in developing the securitization in Malaysia. It can be concluded that maturity significantly contribute to the determinant primary market spread in internal regression model and debt and crisis significant in external regression model.