Securitization and the Subprime Mortgage Crisis of 2007-2008
Loading...
Date
2016
Authors
Omagwa, Job
Odunga, Robert
Journal Title
Journal ISSN
Volume Title
Publisher
International Knowledge Sharing Platform
Abstract
The paper reviews literature on securitization process in real estate markets and an analysis of the subprime
mortgage market crisis of 2007-2008. In particular, it presents a highlight of the various market participants in
the securitization process and an overview of securitized transactions in the US secondary mortgage market. The
paper further presents a highlight of financial malpractices precipitating the subprime mortgage crisis and the
associated financial implications of the same. In addition, the paper identifies the institutions and participants in
the subprime mortgage crisis securitized transactions leading to the housing market debacle. The paper further
explores the creation of ABS and CDOs as an outcome of securitization and a review of empirical literature on
financial implications associated with the abuse of securitized transactions in the US mortgage market.
Description
A research article published in Research Journal of Finance and Accounting
Keywords
Securitization, Asset-Backed Securities, Special-Purpose Vehicles/Entities, Credit enhancement and Conduit Lending.
Citation
Research Journal of Finance and Accounting. Vol.7, No.10, 2016