In the United States, bank securitization of mortgage loans at its highest since the subprime crisis

Like an air of deja vu? In recent months, an activity has been booming on Wall Street: the securitization of mortgage loans placed with investors by banks and real estate companies. We can count in their ranks in particular Goldman Sachs, Morgan stanley Where JPMorgan Chase. These titles, nicknamed “private label”, literally exploded between March and June to reach $ 42 billion. Either one of their highest quarterly amounts since the subprime crisis, underlines the “Wall Street Journal”.

The reference is far from innocent. The loans which are repackaged in this way and placed back on the market are indeed those which cannot be refinanced by the large American parastatal organizations, Fannie Mae and Freddie Mac. The latter, who benefit from state support, usually carry out this type of securitization themselves. The banks thus remove eligible real estate financing from their balance sheets, and the two organizations issue bonds which they guarantee repayment to the investors who subscribe them.

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