Securitization: Lessons Learned and the Road Ahead

Miguel Segoviano, Bradley Jones, Peter Lindner and Johannes Blankenheim

No 2013/255, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; securitization market; capital charge; a number of securitization product; mortgage market; plain vanilla; Finance; Financial Crisis; ntermediation; Bank; Mortgages; and Foreclosures; Financial Instruments; Institutional Investors; Investment Banking; Rating; Rating Agencies; Regulation; subprime mortgage; securitized assets; private equity; risk weight; discount window; loan origination; Securitization; Loans; Credit; Credit ratings; Europe; Global (search for similar items in EconPapers)
Pages: 74
Date: 2013-12-19
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=41153 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2013/255

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().