zlacker

>>zerosi+(OP)
If the loans are such a good value, then why do the banks want to get rid of them so badly? Dumb investors...

>>zerosi+e
That’s exactly the same as going into a furniture shop and going “if this furniture was so good, then why would they want to sell it so badly”. They’re a furniture shop - they make and sell furniture. There’s only so much furniture you need for yourself after all no matter how good it is.

Investment banks make investment products for investors. They do keep risk for themselves so you will find when they sell these loans they will often keep a slice, but they only need so much Oracle datacenter loan risk - they want to have free capital to find other opportunities to fund.

>>seanhu+vp
It is not the same and your metaphor is bad. Furniture generates revenue when sold, loans generate revenue just by holding them as there is an interest that needs to be repaid.

Hence the shop sells the inventory as fast as they can, while banks hold safe loans as long as they can unless they believe that aren't safe anymore or that they can make more money with something else.