Since securitization is an effective means for banks to deal with funding problems, they have an incentive to securitize assets.

For this assignment, research, and lecture notes to develop a 1-2 page paper explaining what this means and how it can affect a bank's liquidity.

• Be sure to link a bank's liquidity through securitization to the rather recent home mortgage crisis.

• Close your report by stating your opinion regarding the practice of securitization.

Save your assignment as a Microsoft Word document.

Securitization

"Securitization" defines to the process of turning resources into securities -- economic instruments that can be willingly bought and sold in monetary markets, the way stocks, relationships and futures contracts are operated. While used in relation to actual estate,...