Editorial Board

Europe Needs More of the Right Kind of Finance

Securitization has a bad reputation, but it can do a lot of good.

July 23, 2024 at 5:00 AM UTC

By The Editorial Board

The Editorial Board publishes the views of the editors across a range of national and global affairs.

Securitize this.
Photographer: Krisztian Bocsi/Bloomberg

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For those who experienced the 2008 financial crisis, the term “securitization” conjures up bad memories. The packaging and repackaging of subprime mortgages into ever-more-complex securities, distributed around the world, helped turn a US housing bust into a global disaster.

Now the European Union wants to revive securitization, to facilitate much-needed investment in areas such as the green transition. Done right, it’s actually a good idea.