The securitization of mortgages and credit generally has served to merge the credit and securities markets and the capital markets to an extent where collateralized obligations are losing value sharply because of difficulties in the credit markets and the burden of stability has fallen on central banks.
[15] The second concern is that a notable gap has emerged between actual investment and the investment levels that could have been expected if the economy had evolved along its pre-pandemic growth path (Slide 7, left-hand side). This shortfall significantly predates the tightening of monetary policy.