• Basel IV output floor inflates risk weights on low risk assets
• Profitability falls as required margins rise after floor effects
• Banks pivot to cash and synthetic securitization to rotate balance sheets
• Tranching redistributes risk and funding costs while retaining core economics
• Capital velocity grows as freed capacity is reinvested
• Senior tranche floors can overstate credit risk in prime pools
• Synthetic SRT has become the dominant path for risk transfer
• Policy proposals target floors, due diligence and risk weight curves
• Better LCR treatment could revive high quality issuance
• Securitization emerges as pragmatic balance sheet engineering in the Basel era