Can Securitization Work?Economic, Structural, And Policy Considerations

摘要

Structured asset securitization, particularly private label residential mortgage securitization, contributed mightily to the decline and fall of systemically important financial institutions during the market meltdown of 2008. This has led many to question whether securitization can work in a properly balanced market environment. This article considers that question, addressing in detail whether securitization can, in a sustainable manner, enhance economic efficiency in terms of the organization and allocation of financial capital that in the end improves real consumption and investment outcomes.