tag:blogger.com,1999:blog-30643134.post5928209534460084997..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Asset-backed securities and the future of consumer lendingAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-30643134.post-48571118243611636942008-11-18T15:00:00.000-05:002008-11-18T15:00:00.000-05:00How effective this is depends entirely on how its ...How effective this is depends entirely on how its structured. If the government offered term financing for the life of the instrument, it would be wildly different than existing programs.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-61479457159743914602008-11-18T14:27:00.000-05:002008-11-18T14:27:00.000-05:00Isn't this also somewhat different because once th...Isn't this also somewhat different because once the bad mortgages are gone, they are gone. Improving liquidity in the ABS market (or more likely the ABCP market) on the other hand, would require real investors coming in at some point to take up the slack, which is somewhat of an assumption at this point. Otherwise, is this really any different than lending to the banks through any other of the many liquidity programs?Credit Cruncherhttps://www.blogger.com/profile/04228194731491964542noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-64004359386334154212008-11-18T10:00:00.000-05:002008-11-18T10:00:00.000-05:00It's not obvious to me why banks would be much mor...It's not obvious to me why banks would be much more willing to lend even if covered bonds were an option. It seems like it just moves assets off the balance sheet much like the guarantee portfolios of the GSEs. Would the main benefit be that it would allow long term debt issuance rather than relying on the short term funding from various Fed programs?PNL4LYFEhttps://www.blogger.com/profile/10009165302340487456noreply@blogger.com