Creating New Markets on Needs–Not Just Traditions

Julie C. Nichols General

MBA NewsLink – Mark Dangelo

Replacement of mortgage-backed securities with a new form of security has been on-and-off the industry front burner since 2008. Politicians and officials, from former Treasury Secretary Henry Paulson to Sen. Charles Schumer, D-N.Y., joined ideals and bills sponsored by industry associations, academics, economists and pundits willing to advocate change. Yet, with all the platforms and rhetoric, little in the way of action has been accomplished. Reminiscent of Angry Birds, individuals and organizations have launched themselves and those they influence against adoption of new fixed-income instruments, trading exchanges and data standards. The result is an outward appearance of inaction and an inward one of chaos. Five years and counting and still we are no closer to moving beyond traditional ideas and instruments into technology-enabled niche solutions that could spur lasting recovery.

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