Securitization: Lessons Learned and the Road Ahead

By Miguel A. Segoviano, Bradley Jones, Peter Lindner, Johannes Blankenheim

December 19, 2013

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Miguel A. Segoviano, Bradley Jones, Peter Lindner, and Johannes Blankenheim. Securitization: Lessons Learned and the Road Ahead, (USA: International Monetary Fund, 2013) accessed September 19, 2024

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.

Subject: Banking, Credit, Credit ratings, Financial institutions, Financial services, Loans, Money, Mortgages, Securitization

Keywords: A number of securitization product, And Foreclosures, Bank, Capital charge, Credit, Credit ratings, Discount window, Europe, Finance, Financial Crisis, Financial Instruments, Global, Institutional Investors, Investment Banking, Loan origination, Loans, Mortgage market, Mortgages, Ntermediation, Plain vanilla, Private equity, Rating, Rating Agencies, Regulation, Risk weight, Securitization, Securitization market, Securitized assets, Subprime mortgage, WP

Publication Details

Pages:

74
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/255
Stock No:

WPIEA2013255
ISBN:

9781475541946
ISSN:

1018-5941

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