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?
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.