Securitization of small business loans

Securitize the small business loans, pooled them across regions and sectors, and package them into tradable securities, sell them to hedge funds and other investors, take the lending risk out of the commercial banks. The Fed can buy them too, thus effectively lending directly to the small businesses. It will benefit everybody.

7 Comments
 

Securitize residential mortgages, pooled them across regions and sectors, and package them into tradable securities, sell them to hedge funds and other investors, taking the lending risk out of retail banks. The Fed can buy them too, thus effectively directly to home buyers. They can even lower interest rates to near zero and you won't even have to prove your income to get one of these mortgages, nor will you have to deal with those silly things called down payments. And if you have poor credit we can even structure your loan so that you can pay a really low payment now because by the time the rate changes you will have sold your house. It will benefit everybody.

 
olafenizerSecuritize residential mortgages, pooled them across regions and sectors, and package them into tradable securities, sell them to hedge funds and other investors, taking the lending risk out of retail banks. The Fed can buy them too, thus effectively directly to home buyers. They can even lower interest rates to near zero and you won't even have to prove your income to get one of these mortgages, nor will you have to deal with those silly things called down payments. And if you have poor credit we can even structure your loan so that you can pay a really low payment now because by the time the rate changes you will have sold your house. It will benefit everybody.

PWNED!

 

Ther difference is that, small business loans stimulate the economic activities, while the residential mortgages do not. Securitized small business loans will be the next big thing on the trading floors. By buying and selling securitized small business loans, the Fed can have direct and immediate impact on the economy. Unlike the traditional monetary tools, it does not have to rely upon the commercial banks' willingness to lend. It would be a much more precise tool in the Fed's tool box than the traditional tools.

 
Best Response

Minus sed atque vero eum quasi quae. Cum quos ab voluptatem eius.

Aliquam numquam corrupti ullam modi sit quo debitis et. Ea ipsa deleniti maiores voluptatum nemo et. Voluptatum dolorum facere placeat. Qui nihil alias numquam facere fugit. Incidunt sint quis sed laborum consequatur animi repellat. Aut asperiores vitae fugiat dolorem ut iusto fugiat.

Quo doloribus mollitia repellat dolorum eius qui rem harum. Hic rerum voluptate eum voluptas aut quia tempora incidunt.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (67) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”