13. The following appeared in an International Monetary Fund working paper by Miguel Segoviano, Bradley Jones, Peter Lindner, and Johannes Blankenheim:

Securitization, like other forms of financial innovation, has costs and benefits associated with it.

There are conditions under which securitization can be a net benefit for the financial system and vice versa. As such, securitization as a concept is neither inherently good nor bad per se—a point underscored by the marked variation in the performance of different classes of securitized assets during and after the global financial crisis (GFC). This point of departure stands in contrast to some of the more polarizing views associated with securitization, which were advanced in the aftermath of the GFC.10 What are the costs associated with securitization that the quotation is referring to?