It’s securitization, but not as we knew it

The dynamics of the US securitization market have changed beyond recognition, while the role of banks in ABS has evolved too. The excesses of the past have gone and securitization is now a safe and reliable funding tool for consumer lending. So why don’t banks want to talk up their role in the market?

Illustration: Hit&Run

 

IN ADDITION        

The role of the banks in today’s securitization market is very different to what it was in the run-up to the great financial crisis. Banks no longer load assets onto their own balance sheets with a view to securitizing them.

There is no more ‘originate to distribute’, the grand name for the strategy behind so much of the dysfunctional lending that drove the sub-prime residential mortgage-backed securities (RMBS) crisis.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access