Securitization also allows companies to reduce their funding costs. For example, Ford Motor Co. sells its auto loans in the securitization market, which enables it to get funding at a lower rate than unsecured debt. This allows banks to take on more borrowers and provides investors with an opportunity to profit off traditionally illiquid assets. However, the reputation of securitization took a hit during the financial crisis due to the fact that Personal Installment Loan with questionable credit quality were often included in the pools of loans sold to investors.
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