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>Any stream of cashflow that has a reasonable amount of predictability will try to be and can be securitized given demand from end buyers. Regarding end-buyers
by hkmurakami 11y ago
>Any stream of cashflow that has a reasonable amount of predictability will try to be and can be securitized given demand from end buyers.
Regarding end-buyers, how much of this demand for yield is one that has been artificially created by the ongoing depressed interest rate environment?
- nrao123 11y agoSecuritization & Need for yield are two diffetent concepts. I can reach for yield by taking on more risk (e.g. get into financing late state internet companies) and not just buy high risk securitization products. Securitization has existed in high interest environments as well. However- securitization offers a framework to slice up risk in such a way to meet the demand for more yield. E.g.the Z tranches & CDOs of the 2004-2008 era. It could be that rental checks could be a higher risk product & they are being securitzed in such a way to meet the need for yield. But- I am not sure how much exactly.