abhishreshthaa
Abhijeet S
MARKET INTERMEDIATION COSTS
When market intermediation costs are lower than bank intermediation costs, even complex and highly illiquid bank loans could be securitized.
COST OF CAPITAL
Securitisation tends to eliminate fund-based intermediation. The intermediary in the process turns down to a specialized service oriented firm and thus charges some reasonable fees, which is lower than the fund based intermediation costs.
When market intermediation costs are lower than bank intermediation costs, even complex and highly illiquid bank loans could be securitized.
COST OF CAPITAL
Securitisation tends to eliminate fund-based intermediation. The intermediary in the process turns down to a specialized service oriented firm and thus charges some reasonable fees, which is lower than the fund based intermediation costs.