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| Keywords: Securitization Market Activity.svg 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 fcic gov/hearings/pdfs/2010-0113-Zandi 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 2012-03-15 http //www economy com/mark-zandi/documents/FCIC-Zandi-011310 pdf Financial Crisis Inquiry Commission PD-USGov Uploaded with UploadWizard Mortgage crisis 2000s Banking Economy of the United States | ||||
