When business and political grandees gathered in Davos a year ago, the seemingly-dull issue of securitisation attracted an unexpectedly large amount of debate. This type of topic is usually far too arcane to attract non-banking attention, but in January 2007 the delegates were hotly divided about whether 21st century financial innovation had been welcome – or not.

Stephen Roach, Asia chairman of Morgan Stanley, remarked that the subject provided “some of the fiercest arguments” in Davos 2007, as western investment bankers defended their practices – and some economists warned of looming credit woes. This year, the Davos finance debates could be doubly emotive. In the past 12 months, the global financial system has been hit by a painful credit squeeze as US subprime mortgages have turned sour, prompting unexpected chain reactions in the arena of modern, complex finance.