information asymmetries in the mortgage backed securities market chris downing dwight jaffee and nancy wallace may 3 2005 please address correspondence to jones graduate school of management rice university 6100 main street room 249 mail stop 531 houston tx 77005 phone 713 348 6234 fax 6296 e cdowning edu haas business california at berkeley ca 94720 510 642 1273 643 7357 4732 1 abstract one primary results studying asymmetric as part informa tion economics over last 30 years has been a theory markets for lemons that is goods are likely be poor quality unfortunately it proven difficult directly test because causative factor implies key variables not observable this paper we avoid problem by mbs which exhibits significant on an
