Securitization Slump a Macroeconomic Headache

Precisely because banks have become adept at repackaging their loans into bonds for sale â?? and thus removing them from their balance sheets â?? they have been able to provide more credit than in earlier decades. Or, to put it another way, during the past decade it has been investors holding securitised bonds, not just banks, that have been acting as key lenders to the economy.