612.3. In his book Structured Credit Products, Moorad Choudhry says the securitization market exacerbated the global financial crisis: "following rapid growth in volumes during 2002–2006, in 2007 the securitisation market came to a virtual standstill as a direct impact of the sub-prime mortgage default and the crash in asset-backed commercial paper trading… Economic growth collapsed, which suggests that the securitisation market, in the form of ABS such as collateralised debt obligations (CDOs), was a major contributor in magnifying the impact of poor-quality lending in the US mortgage market."¹

According to Choudhry, there has been a decline in demand in the new-issue securitized finance products market following the 2007 financial crisis. Specifically, he asserts that EACH of the following factors was a contributor to a decline in the market's confidence EXCEPT, which does he not cite?