Tóm tắt
PurposeThe purpose of this paper is to connect the dots between subprime mortgage lending and the financial crisis of 2008.Design/methodology/approachDescriptive analysis of structured securities.FindingsThe innovation of structured securities was incorrectly implemented in the case of mortgage‐related securities.Research limitations/implicationsThere is no centralized source for data connecting mortgages with securities, thereby making a rigorous, statistical analysis impossible.Practical implicationsThe 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.Originality/valueThe paper extends knowledge on the topic of mortgage related securities.
