The paragraph below is from RateLink, the service I subscribe to that feeds real-time Mortgage Backed Securities (MBS) trading, so that I can keep an eye on interest rate movement. Interesting.
Just like mortgage-backed securities, financial firms bundle car and student loans and credit card receivables into bonds for sale in the open market. The market for such product has declined from 50.7B in October 2007 to just 500M last month, a 99% drop. The vast majority of cars sold and educations purchased are done on credit. It is this type of data that has the Treasury retooling the use of the TARP program.
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