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Published Work
The US housing market is healthy, but some market participants worry it may be starting to heat up too much. We think that's a mistake-and an opportunity. That's because mortgages today have little in common with the risky loans made before the housing crisis.
History has shown that evolution in the financial markets gives rise to new investment opportunities. In our 2011 paper Increasing the Role of Private Capital in the Mortgage Market we described our vision for private capital to replace government capital in financing mortgage credit. This process of disintermediation has been occurring in the US financial sector for some time across end markets. Today, it is taking place around the world and is poised to accelerate, introducing a new set of investment opportunities.