Consider the following statement: 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.