Why do banks securitize their assets?
Regarding securitization process, some benefits to the banks, who sell securitized assets to SPVs, are suggested by the curriculum such as increasing profitability and efficiency for the banks and that they can lend out more.
However, when selling those securitized assets, don’t banks sell them at present values (which means they give up all of the interests in the future)? If that is the case, are they actually increasing profitability through securitization and what is the point (to the banks) of getting money to lend out more?
Anyone please help me explain this.
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