What Is Securitization?: And How Did It Pop the Subprime Loan Bubble?

by Mark Zandi

Overview

This Element is an excerpt form Financial Shock: Global Panic and Government Bailouts--How We Got Here and What Must Be Done to Fix It (ISBN: 9780137016631) by Mark Zandi. Available in print and digital formats.

 

Pull back the curtain on the subprime mortgage collapse and discover what really happened.

 

To fully understand the subprime mortgage implosion, you need to know how subprime mortgages were financed. Fundamentally, loans either are financed directly by financial institutions such as commercial banks and thrift institutions or are repackaged as bonds (that is, securitized) and sold to investors, who keep or trade them. The overwhelming majority of subprime loans were securitized...

Product Details

ISBN-13:	9780131377868
Publisher:	Pearson Education
Publication date:	11/16/2009
Series:	FT Press Delivers Elements
Sold by:	Barnes & Noble
Format:	eBook
Pages:	9
File size:	528 KB

About the Author

Dr. Mark Zandi is Chief Economist and cofounder of Moody's Economy.com, an independent subsidiary of Moody’s that provides economic research and consulting services to businesses, governments, and other institutions. His recent research has included studying determinants of mortgage foreclosure and personal bankruptcy; analyzing economic impacts of tax and government spending policies; and assessing policy responses to bubbles in asset markets. Zandi holds a Ph.D. from the University of Pennsylvania, where he did research with Gerard Adams and Nobel Laureate Lawrence Klein, and a B.S. from Wharton. He appears regularly on ABC News, Wall Street Week, CNN, and CNBC.