Category: Mortgage-Backed Securities

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Credit-ratings-agencies-D-008

S&P sued. Conspiracy or idiocy?

Link: How has it taken 5 years to get to this point? The US government, after “a fallout in talks”, has notified Standard & Poors that it intends to sue them over their standardly poor (in that they were useless) ratings of CDOs and RMBSs in 2007. Of course, the catch in all of this is that the US is […]

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monopoly

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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liars poker

Books: Liar’s Poker

After yesterday’s post on Mortgage-Backed Securities (click here), I felt that I should write something on the book that talks about the origination of the MBS (which, for the record, is a pun: Origination refers to the collection of mortgages and repackaging them as an MBS). Michael Lewis, before he became famous for writing books, was a […]

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monopoly2

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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