Securitization is the packaging and selling of loans (good and bad debt) as well as other asset backed securities. Remember the financial crises, what can be done better today. The pooling of assets and selling them to investors. The creation of tranches involve different payment structures and cash flows. In a two-tranche system, tranche A will have priority over tranche B.

Take a look and discuss some of the risks we covered in the course. We started this course talking about the financial crises and some of the risks and here we are back to one of the most important financial risks in the past 10 years. What do we know more importantly what do need to do in this area we do going forward

Please give me 200 words dicsussion. Thanks a lot.