I am reading an article and became confused with this part: "The traditional banking model, in which the issuing banks hold loans until they are repaid, was replaced by the 'originate and distribute' banking model, in which loans are pooled, tranched, and then resold via securitization." I thought banks always did this. If the above statement is true, does anyone know where I can find evidence for it?
Page 1, column 2:
The syndicated loan market rose from a mere $339 billion in 1988 to $2.2 trillion in 2007, the year the market reached its peak.
From this, we can see that it started in the 1980s.