In the immediate aftermath of the credit crunch, some commentators were more than willing to lump the whole idea of securitization in with other Wall Street woes. That was always a bit naive. But some may detect some irony now that securitized deals may come to the rescue of one section of the non-performing loans market.

Wall Street firms will likely soon start packaging delinquent loans into mortgage-backed securities as a way to satisfy the higher yields demanded by investors, according to Reuters. This is a good idea, as it just might breathe some life into a moribund market. The only way this could be scandalous will be if the credit ratings agencies assign them an AAA rating, which we can guarantee will not happen.

As far as junk bonds go, these bonds just might be a huge hit. Yields are hard to come by these days. One issue will be how these bonds will be affected by modifications. The analysis could get a bit tricky. Let's hope the rating agencies are up to the task.

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