Indeed, perhaps capital markets can securitize these potentially risks.
The more uncertainty there is, the more difficult it is to securitize (insure) their longer-term investments against losses of capital.
Investment bank securitizers were more willing to securitize risky loans because they generally retained minimal risk.
This is the number one reason to securitize a cash flow and can have tremendous impacts on borrowing costs.
However, lenders have begun to securitize loans themselves, especially in the areas of mortgage loans.
