The purpose of this paper is to connect the dots between subprime mortgage lending and the financial crisis of 2008.
Descriptive analysis of structured securities.
The innovation of structured securities was incorrectly implemented in the case of mortgage‐related securities.
There is no centralized source for data connecting mortgages with securities, thereby making a rigorous, statistical analysis impossible.
The US Congress authorized $700 billion to purchase “troubled assets,” defined as “residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages … ” This paper exploits the difference between mortgages and those securities.
The paper extends knowledge on the topic of mortgage related securities.
CitationDownload as .RIS
Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited