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Much of this year's growth is expected to come from banks securitising loans that are already on their books and from an increase in American-style securitisation in other markets, especially European.
ECONOMIST: Bonds that rock and roll
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In mortgage securitisation, for instance, the lender is supplanted by the broker, the loan originator, the servicer (who collects payments), the investor and the arranger, not to mention the rating agencies and mortgage-bond insurers.
ECONOMIST: Securitisation
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No one knows exactly what the right balance of debt and equity is in an economy, but the shrinkage of securitisation in particular makes it more likely that the process of deleveraging will overshoot.
ECONOMIST: Banks will still make money, just less of it