Q: Mortgage securitization has gotten a lot of attention lately, but how long has it been around?
Frank Fabozzi: Mortgage-backed securitization goes back about 40 years. The first Ginnie Mae securitization was 1970. When the first one was finally paid off, they had a big party down at Ginnie Mae. I was invited to that; that's how I know it's been a long time.
Will Goetzmann: There was an earlier period of securitization of real estate loans in the 1920s, and they were commercial loans. A lot of buildings in Manhattan were financed by bonds issued to the public that were backed by mortgages for these buildings.