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Market Risk and Credit Risk Securitization
Since securitization is an effective means for banks to deal with funding problems, they have an incentive to securitize assets.
For this assignment, use what you have learned from your readings, 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.
- Be sure to proofread your paper for spelling and grammar errors.
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