“…Several studies highlighted the role of the originate and distribute (O&D) model in financial instability (Kregel, 2007; Wray, 2009; Moe, 2014; Nesvetailova & Palan, 2013); and how the shift from commercial to shadow banking intensified these instabilities (D’Arista, 2018; Nersisyan & Wray, 2010; Tokunaga & Epstein, 2018). Initially, McCulley (2009) pointed at the lack of regulation and oversight for the instability; but others emphasized the procyclical nature of securitization and secured lending to explain the financial instability in these markets (Adrian & Shin, 2010; D’Arista, 2018; Gabor, 2016; Mehrling, 2011; Sissoko, 2016).…”