These components frequently are repackaged into synthetic products having risk profiles that mimic financial instruments in other  BIS Review 50/1997  -2-  markets. The synthetic products can then be resold to those investors most willing and able to bear the associated risks.
Another far-reaching innovation is the technology of securitization -- a form of derivative -- which has encouraged unbundling of the production processes for many credit services. Securitization permits separate financial institutions to originate, service, fund, and assume the credit or market risks of a portfolio of loans or other assets.