The diminished incentive to screen and monitor borrowers implies that investors may have ultimately acquired assets of relatively lower quality and performance. 3  See Ashcraft and Schuermann, (2008), Rajan (2005) and Sufi and Mian (2008).
BIS Review 13/2009  3  This is compounded by the fact that the intermediaries, who purchased assets and bundled them into pools prior to securitising them, focused on maximising revenues stemming from the servicing fees charged to investors, without necessarily delivering the risk/return balance desired by investors.