Securitization: Lessons Learned and the Road Ahead

Author/Editor: Miguel A. Segoviano Basurto ; Bradley Jones ; Peter Lindner ; Johannes Blankenheim
Publication Date: December 19, 2013
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper examines the financial stability implications arising from securitization markets, with one eye on the past and another on the future. The paper begins by deriving a number of “lessons learned” based on an examination of key industry developments in the years before the crisis. Emphasis is placed on the various ways in which securitization markets dramatically changed shape in the years preceding the crisis, vis-à-vis their earlier (simpler) incarnation. Current impediments to securitization markets are then discussed, including a treatment of various regulatory initiatives, the operational infrastructure of securitization markets, and related official sector intervention. Finally, a broad suite of policy recommendations is presented to address the factors that either contributed to the crisis or may currently be posing obstacles to growth-supportive, sustainable securitization markets. These proposals are guided by the objective of preserving the beneficial features of securitization, while mitigating those that pose a potential risk to financial stability.
Series: Working Paper No. 13/255
Subject(s): Financial crisis | Capital markets | Monetary policy | Financial instruments | Asset management | Global Financial Crisis 2008-2009

Publication Date: December 19, 2013
ISBN/ISSN: 9781475541946/1018-5941 Format: Paper
Stock No: WPIEA2013255 Pages: 74
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