Eisman told Bloomberg TV he is not calling for the kind of financial crisis that unfolded in the U.S. market, because the Canadian subprime mortgage market is much smaller than in the U.S.. However, he cautioned that the run up in prices in Canada is even sharper than the U.S. experience. (canadianbusiness.com)
The international financial crisis that began in the U.S. subprime mortgage market in 2007, for example, is importantly linked to at least two of the innovative financial techniques discussed in this book: securitization and credit default swaps. (slaw.ca)
For example, heightened risk taking by investors and elevated leverage in large financial institutions and in shadow banking activities were among the factors that turned a downturn in the U.S. subprime mortgage market into a global financial crisis. (bankofcanada.ca)