– Vinod Kothari
Some people love it; some love to hate it, and some just live it. No matter which one of the clubs one belongs to, but there is no doubt that securitization is a major financial phenomenon.
Year 2020 marks 50 years of the inaugural mortgage-backed pass-through transaction done in 1970 by Ginnie Mae. Securitization has turned fifty.
The world is not in exactly right environment to do either a champagne party or otherwise – however, one should not gloss over the massive change that securitization has made, to the financial landscape of the world, over these five decades. Irrespective of the jury verdict on whether it was responsible for the Global Financial Crisis, the fact is that it had such a major impact that its short-lived absence from the scene could put world’s financial system into doldrums. And now, there are regulators’ reports looking at this very instrument with optimism to lead the recovery out of the COVID disruption.
To commemorate 50 years of securitization, we propose to bring an anthology of write-ups by senior securitization professionals, particularly those who have seen its boom and bust. The write-ups may be along the following lines:
- Historical write-ups, recounting the development of early MBS by the agencies, the way it was perceived then and major economists’ remarks about this instrument
- Contribution of securitization to mortgage markets globally, particularly in mortgage availability and affordability
- Contribution of securitization to financial inclusion, making smaller and community lenders reach out to capital markets through larger intermediaries
- Securitization and emerging markets
- Lessons learnt from the GFC and how regulatory systems have evolved thereafter
- Legal robustness of securitization – has it proved itself over decades of crises?
- Off-balance securitization – development of accounting standards over the years, and does off-balance sheet securitization have any relevance left?
- Significant risk transfers and capital relief
- Market reports from major countries.
List of Chapters
For a work-in-progress list of Chapters, see here.
The anthology is proposed to be a compilation in e-book form. We will be in touch with some publishers to seek interest in publication.
Structure of the Chapters
The anthology will be collaborative effort of several leading authors, experts, researchers and practitioners from all over the world. Each of the contributors are leading luminaries in their own field. So while substantial discretion will be used by the contributors, some pointers for contributors are as follows:
- This e-book will hopefully have a very long shelf-life. Hence, the stance of the write-ups is not contemporaneous state of the market. Rather, the write-ups trace developments over time, to identify trends. The contributors deploy their wisdom to think of the trends that will continue, wither away, or strengthen. The commemorative is all about continuity and change.
- We are wanting to minimise current market data or statistics, for reasons discussed above.
- Each of the write-ups may provide a larger, macro view before narrowing down on micro aspects.
- One of our very important objectives is to have the contribution of securitization to development of financial markets, financial inclusion, stability and robustness of systems, etc. It is not merely a historical account, but an important document on lessons to be learnt, and to provide a place from where one may look at the decades to come.
- For scholars/practitioners who have been watching the industry grow over the years, if there are details of one’s personal association with the industry – as to how it developed and changed over time – that may of interest to readers. This may be added with generalisation of the market.
Invitation for contributions
Needless to say, it is a massive project – it has to be collaborative. We need the support of scholars, authors, stakeholders – those who have been practising, teaching, consulting or regulating securitization over the years. Hence, if you are one such contributor, or you know one who may be such a contributor, your contribution/assistance is most welcome.
For interest in contribution to the anthology, please do write to email@example.com. Please indicate your background, proposed contents, length of the article, etc. After hearing from us positively, you may start writing your article, for submissions by end of August, 2020.
From our side, this project is completely non-pecuniary. We just felt that we can steer this effort which may be valuable for a long time.
However, this project will involve massive research effort, editing, and production. Hence, there may be substantial expense.
If you want to sponsor in any manner, or want to put up a befitting advertisement about your company/products, the same is welcome. Please feel free to discuss with firstname.lastname@example.org.
Timeline for publication
Tentatively, we may put the e-publication in public domain by November, 2020.