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Aligning Incentives Vital in Reshaping Market, But Risk Retention May Not be the Answer
While legislation and other regulatory proposals try to sift out exactly how much risk loan originators and security issuers should retain before unloading assets, many industry experts are clamoring that risk retention may do more harm than good. But some other form of incentive alignment must be installed for the market to function properly. While risk retention is certainly a buzzword among...
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