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| Keywords: Securitization Market Activity.png Securitization_Market_Activity svg Image from Economist Mark Zandi's FCIC Testimony Explanation From Economist Mark Zandi's January 2010 testimony to the Financial Crisis Inquiry Commission The securitization markets also remain impaired as investors anticipate more loan losses Investors are also uncertain about coming legal and accounting rule changes and regulatory reforms Private bond issuance of residential and commercial mortgage-backed securities asset-backed securities and CDOs peaked in 2006 at close to 2 trillion In 2009 private issuance was less than 150 billion and almost all of it was asset-backed issuance supported by the Federal Reserve's TALF program to aid credit card auto and small-business lenders Issuance of residential and commercial mortgage-backed securities and CDOs remains dormant <ref>http //www economy com/mark-zandi/documents/FCIC-Zandi-011310 pdf Testimony of Mark Zandi to Financial Crisis Inquiry Commission-January 2010</ref> Banks and other financial institutions packaged various types of loans including mortgages into securities and sold them to global investors This is called securitization In exchange for purchasing the investment the investor receives a right to the cash flows from the underlying loans specified for the security The chart shows how this financing source dried-up meaning that non-prime mortgages and other types of loans could not be originated and sold to investors Reflist http //www fcic gov/hearings/pdfs/2010-0113-Zandi pdf Farcaster talk 04 36 10 October 2010 UTC PD-USGov Original upload log page en wikipedia Securitization_Market_Activity png 2010-10-10 04 36 Farcaster 960×720× 81241 bytes <nowiki> Image from Economist Mark Zandi's FCIC Testimony http //www fcic gov/hearings/pdfs/2010-0113-Zandi pdf ~~~~~ ~~~~ </nowiki> Mortgage crisis 2000s Banking Economy of the United States History of the United States | ||||
