Securitization Creates Buffer Against Rising Rates, Says Industry Executive
• Debt securitization packages debt into securities sold to investors, impacting interest rates • With higher interest rates, securitization keeps rates lower and less volatile than otherwise • Securitization creates secondary market for loans separate from banks' lending cycles • Structured Finance Association CEO explains securitization buffers rate impacts of Fed hikes • Article originally appeared in a Wealth! episode featuring market analysis and expert insight