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