In the U.S., the size of investment assets started to overtake that of deposits sometime in the 1970’s, so this relatively new trend sparked the need for financial institutions to improve the utilization of existing and future assets. In a well a functioning financial market, the information conveyed in prices plays an important role in helping to optimally allocate capital to its most profitable and ultimately most efficient use. When loan demand exceeds deposit …showed first 75 words of 2097 total…

…showed last 75 words of 2097 total…markets. This is becoming the option of choice for many financial institutions today because it can be done quickly and appears to be a less expensive method of dealing with loan demand. Since its development in the late 1980s, asset securitization has become a permanent fixture in the capital structure of many corporations. The degree of utilization of asset securitization in a country seems to go hand in hand with that of financial market maturity.