Origins of the subprime mortgage turmoil Over the past quarter century, advances in information technology, the development of credit-scoring techniques, and the emergence of a large secondary market, among other factors, have significantly increased access to mortgage credit.
Efforts to address these liquidity risks should carefully take into consideration the effect that they would have on the broader financial system. For example, splintering central clearing by currency area would fragment liquidity and reduce netting opportunities, which in the case of events like Brexit could actually trigger even greater liquidity risk.