The credit intermediaries also resorted to large-scale reliance on credit-risk transfer (CRT) instruments, including securitisation structures, which enabled the hiving off of such exposures to a variety of Special Purpose Vehicles through issuance of securitised paper, mortgaged backed securities and structured finance products.
Such risk transfer resulted in the investors in such products getting farther and farther removed from the underlying risks on the borrowers whose loans had been securitised and the investors did not know the real nature of risk and where the risk actually resided.