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.
Brazilian real estate developers are still betting on a local housing boom, despite the worldwide credit crunch that originated in
the U.S. subprime mortgage market.
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.
Not exact matches
You might have thought things had changed in world financial
markets since the
U.S. subprime mortgage disaster.
In response to a pessimistic Merrill Lynch report on Canada's housing
market, for example, Harper said «We don't have the same situation here with the
mortgages as was the case in the
U.S. with the
subprime mortgages there.
The commercial paper
market, a vital conduit of financing for
U.S. companies, has shrunk dramatically in the past two weeks because of worries that assets in the ABCP collateral pool included tainted
subprime mortgages.
U.S. Housing
Market Real estate investment trust New Home Construction
Subprime lending Equity REITs
Mortgage REITs Credit Crunch
Heck, only about 13 per cent of the entire
U.S. mortgage market is
subprime and most of those are not in default.