Of course, moving assets off the balance sheet and into special purpose entities, with the attendant creation of servicing rights and high risk residual interests retained by firms, generates its own risks and reduces transparency unless the firm takes additional steps to enhance disclosure. Several types of securitization have grown rapidly over the past decade.
The initial phase will focus on improving market benchmarks, covers initiatives to increase volume of treasury issuances, promotes market-making and price discovery, enhances the yield curve, establishes an organized repo market, and strengthens regulatory oversight. We look forward to the launch of the first trade in the organized repo market by next month.