Scribd Logo
Upload

Welcome to Scribd!

  • Subprime

    Uploaded by

    Ralph Serrao
    10 views2 pages
    The document discusses the mortgage lending process and financial products related to mortgage-backed securities. Mortgage brokers originate home loans that are then packaged by banks into various structured products with different risk levels like collateral debt obligations. These products are rated and sold to investors, with the highest interest rates assigned to those with the poorest ratings and highest risk of default. Credit default swaps and credit rating agencies play a role in this process.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses the mortgage lending process and financial products related to mortgage-backed securities. Mortgage brokers originate home loans that are then packaged by banks into various structured products with different risk levels like collateral debt obligations. These products are rated and sold to investors, with the highest interest rates assigned to those with the poorest ratings and highest risk of default. Credit default swaps and credit rating agencies play a role in this process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    10 views2 pages

    Subprime

    Uploaded by

    Ralph Serrao
    The document discusses the mortgage lending process and financial products related to mortgage-backed securities. Mortgage brokers originate home loans that are then packaged by banks into various structured products with different risk levels like collateral debt obligations. These products are rated and sold to investors, with the highest interest rates assigned to those with the poorest ratings and highest risk of default. Credit default swaps and credit rating agencies play a role in this process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 2

    Click to edit Master subtitle style

    4/25/12

    BANKS

    Loans Proceeds
    MORTGAGE BROKER

    Loans
    ABL MBL COLLATERAL DEBT OBLIGATIONS
    LOW RISK MEDIUM RISK HIGHEST RATING LOWER RATING POOR RATING LOW INT. HIGH INT. HIGHEST INT.

    HOME BUYER S

    SPV SPE SIV

    HIGH RISK

    CREDIT DEFAULT SWAPS ABS MBS

    CREDIT RATING AGENCY BONDS INVESTOR S

    FINANCIA L INS. & INV. 4/25/12 BANKS

    You might also like