Fitch Sees Banks Increasing Securitizations

Commercial banks' participation in the securitization markets will increase as they search out alternative methods of funding and investors become more comfortable with new asset classes, according to a report by Fitch Investors Service.

Fitch estimates outstanding securitized assets at $2.5 trillion. Growth in collateralized bond obligations and collateralized loan obligations has been particularly dramatic, Fitch said.

Securitization can provide banks with access to cost-effective funding, aid in risk management, and provide regulatory capital, said Fitch IBCA director Sharon Weinstein.

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