How much of the specialized information that rests with lenders can be systematized, packaged and transmitted to markets as credit ratings. The principle underlying securitisation is based on the lender having this specialized information which can be unbundled and sold in the market separately in tradable sizes. A large part of the market for structured finance products is over the counter.
Can these products be further standardized so that they can be traded on an exchange which enables greater transparency from the point of view of the investor? Are there better ways of generating more objective information on the market value of collaterals, especially in situations where collaterals are not fully marked to market since such information may not be available on ongoing basis?