Securitization is one of the most important innovations in financial markets. It is a process of converting illiquid …. As a result, securitization improves liquidity in capital markets by allowing originators to remove the issued loans from …, securitization is often suspected of being one of the main reasons for the recent financial crisis. One concern that is frequently …

Securitization improves liquidity in capital markets by allowing originators to remove issued loans from its balance … sheet and use the proceeds for other purposes. Securitization is often suspected of being one of the main reasons for the … recent financial crisis. One concern is that securitization leads to moral hazard in lender screening and monitoring. By …