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The Subprime Mortgage Crisis
Alright, before I begin, I’d like to make the following observations: Some of the concepts/instruments I am going to mention have been explained more fully in a number of previous posts: Mortgages (see here) Mortgage-Backed Securities (MBS) (see here) Collateralised Debt Obligations (CDO) (see here) Ratings Agencies (see here) The content is based on a […]
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What is: A Mortgage-Backed Security
My last post was on mortgages, and focused on the home-owner (see here). If you’ll recall: The Home-Owner has a mortgage liability, which is the obligation to pay back the instalments over the mortgage term; and The Bank has a mortgage asset, which is the right to receive instalments over the mortgage term. Now this […]
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