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Chicago Fed Letter, No. 21, May 1989
Would You Buy a Car Loan From This Bank?

More than 90% of these issues were underwritten by independent investment banks. The underwriter buys the issue for a a fixed price and resells it through its distribution channels to its customers at a higher price. While commercial bank firms play a big role in issuing asset-backed securities, they have played a relatively small role in underwriting them. They would like to underwrite more but their authority to do so is limted.



Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

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