IMF calls for debt securitisation to be revived

Tokyo

DEBT securitisation earned itself a bad name from the global financial crisis of 2008, but the International Monetary Fund (IMF) is now seeking to reform and rehabilitate the practice on the grounds that it can bolster economic growth and the stability of the financial system.

It said in a report that the subprime mortgage market collapse, which led to the global financial crisis and brought some of the world's leading financial institutions to their knees seven years ago, was caused by the abuse of securitisation rather than the process itself.