Securitization
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i. Choose a research topic from the chapter readings or from the list provided by your professor.
ii. Research/find a minimum at least four (4), preferably five (5) or more, different peer- reviewed articles on your topic from the University of the Cumberlands Library online business database. The article(s) must be relevant and from a peer-reviewed source. While you may use relevant articles from any time frame, current/published within the last five (5) years are preferred. Using literature that is irrelevant or unrelated to the chosen topic will result in a point reduction.
iii. Write a four (4) to five (5) page double spaced paper in APA format discussing the findings on your specific topic in your own words. Note – paper length does not include cover page, abstract, or references page(s).
iv. Structure your paper as follows:
a. Cover page
b. Overview describing the importance of the research topic to current business and professional practice in your own words.
c. Purpose of Research should reflect the potential benefit of the topic to the current business and professional practice and the larger body of research.
d. Review of the Literature summarized in your own words. Note that this should not be a “copy and paste” of literature content, nor should this section be substantially filled with direct quotes from the article. A literature review is a summary of the major points and findings of each of the selected articles (with appropriate citations). Direct quotations should be used sparingly. Normally, this will be the largest section of your paper (this is not a requirement; just a general observation).
e. Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic.
f. Conclusion in your own words
g. References formatted according to APA style requirements
Sample Solution
Securitization is a key process within modern finance which involves pooling together various assets or loans and then packaging them into bonds or other securities that are then sold to investors. This type of financial engineering helps banks and other lenders access new sources of funding, enabling them to offer more loans and provide additional lending services while also potentially reducing their overall exposure to risk (Gibson & Brown 2012). As such, it is an important research topic for practitioners in the banking industry as well as those studying finance from an academic point of view.
For example, studies have been conducted regarding how different types of securitized products fare under different economic conditions such as changes in interest rates or global markets performance so that investors can better understand what triggers them to perform differently than expected (Gibson & Brown 2012). Additionally, research has explored how regulations affect this process by analyzing the impact on securitization when countries introduce new legislation related to consumer protection measures or capital adequacy requirements for banks (Gibson & Brown 2012).
Furthermore, work done in this area has focused on understanding why certain asset classes may be more attractive to securitize than others – e.g., mortgages versus auto loans – by examining the costs associated with each one’s origination process and comparing the benefits they offer lenders when compared against traditional financing options (Gibson & Brown 2012). All these topics are essential for individuals in business world looking make educated decisions about where best invest their money but also policy makers concerned with promoting financial stability overall.
In conclusion, due its potential benefit current professional practice coupled with vast array data needed study it properly, researching topic around securitization remains both vital and relevant today. From helping bankers find profitable opportunities present themselves through disruption normal lending cycle regulatory officials hoping ensure safety soundness entire system; gaining greater insight into how works only stands beneficial all involved parties moving forward.