Credit derivatives market will strip out and repackage credit exposures from the vastly greater pool of risks which do not naturally lend themselves to securitisation, Lady Blythe Masters
The Party Starter, Blythe Masters:
"Just as the rapidly growing asset backed securitisation market is bringing investors new sources of credit assets, the credit derivatives market will strip out and repackage credit exposures from the vastly greater pool of risks which do not naturally lend themselves to securitisation, either because the risks are unfunded (off-balance-sheet), because they are not intrinsically transferable, or because their sale would be complicated by relationship concerns."
The best line of course is "By enhancing liquidity, credit derivatives achieve the financial equivalent of a "free lunch" whereby both buyers and sellers of risk benefit from the associated efficiency gains."
from concluding paragraph from her magnum opus - all in the Queen's English of course.
[ Via Clusterstock ]