TITLE:
Non-Standard Securitizations: Their Economic and Financial Applications Potential
AUTHORS:
Lucas Bernard, Willi Semmler, Jason N. Schron
KEYWORDS:
Secuitization, Commodities, Financialization
JOURNAL NAME:
Technology and Investment,
Vol.2 No.1,
February
25,
2011
ABSTRACT: There are numerous obstacles that prevent non-uniform securitization products from being traded in different domestic and international marketplaces. Future-flow receivables and diversified payment rights are the most commonly used and traded assets in these markets. Remittances play an important role in generating funds in economically challenged countries. Securitization is also a major player in commodities markets and has causations and correlations to the current [domestic and international] economic recession. The securitization process for non-uniform products also has similarities to the sub-prime home loan crisis. Our current research explores the various ways in which the securitization process impacts commodity markets and prices. We are also interested in explaining the risks and regulations that prevent non-uniform securitizations from becoming standardized. In this short report, we outline some of the issues in this field.