12 A similar logic applies to a bank whose net interest margins are under pressure because low rates erode the profitability of its deposit-taking franchise. 9  See Kacperczyk and Schnabl (2012).
10  To be clear, I do not intend this critique to apply to first-generation securitizations, such as RMBS, asset-backed securities collateralized by auto and credit card loans, or collateralized loan obligations (where the collateral pool is composed of bank loans).