Although such an analysis is possible, it may be beyond the available resources for many investors. I believe that more homogeneous mortgage securitization contracts could significantly lower the barriers to entry for credit analysts, thereby promoting greater transparency and perhaps more confidence among investors about the securities' underlying risk-return attributes. Third, larger tranches in private-label MBS could have a couple of key benefits.
Lael Brainard: The US economic outlook and implications for monetary policy Speech by Ms Lael Brainard, Member of the Board of Governors of the Federal Reserve System, at the Center for Strategic and International Studies, Washington DC, 2 June 2015.