Securitization and the subprime mortgage crisis

摘要

Since the outbreak of the subprime mortgage crisis, the benefits of securitization have started to be questioned. Originally, securitization was meant to improve the efficiency of capital markets by reducing risks through risk tiering and geographic diversification. It has also been considered to have contributed to a reduction in transaction costs and greater flexibility in financial operations. As it turns out, it seems to have played a major role in fueling the dynamics of the subprime mortgage crisis. This article aims at defining the role of securitization in the subprime mortgage crisis and, more broadly, in the current financial system.