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    Prudent Lending Restored: Securitization After the Mortgage Meltdown (repost)

    Posted By: Veslefrikk
    Prudent Lending Restored: Securitization After the Mortgage Meltdown (repost)

    Yasuyuki Fuchita, Richard J. Herring, Robert E. Litan, "Prudent Lending Restored: Securitization After the Mortgage Meltdown"
    Brookings Institution Press | 2009 | ISBN: 0815703368 | 326 pages | PDF | 1,3 MB

    Once heralded as a financial innovation to diversify risk and enable Wall Street to finance Main Street, securitization helped create the subprime mortgage meltdown of 2006. In this implosion, debt was absorbed by a concentrated group of financial entities, and in 2008 credit markets consequently froze. So why were securities backed by subprime debt deemed so desirable? And what is the future of securitization?