As far as we can tell, GSE mortgage securitization, in contrast to the GSE's portfolio holdings, is the key ingredient to maintaining and enhancing the benefits of the GSEs to homebuyers and secondary mortgage markets. And mortgage securitization, unlike the GSE portfolio holdings, does not create substantial systemic risks.
6 To prevent market-wide liquidity problems from turning into solvency problems for individual institutions, the Eurosystem introduced, as of October 2008, a fixed-rate full allotment regime in its refinancing operations, offering unlimited liquidity to banks at predictable cost against an expanded set of eligible collateral. This led to an excess supply of central bank liquidity, relative to the liquidity needs of the banking sector.