These models, in turn, typically are linked to huge databases on borrower characteristics maintained independently by national credit bureaus. Numerous types of assets are now routinely securitized, including residential mortgages, commercial mortgages, auto loans, and credit card loans. In addition, medium- and large-size businesses, including some that are below investment-grade, regularly access the commercial paper market by securitizing their trade accounts or other assets.
Recently, securitization and credit-scoring are beginning to be applied to small business lending. These and other developments facilitating the unbundling of financial products have surely improved the efficiency of our financial markets.