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5/28/2018 US Subprime Mortgage Crisis
1/23
US SUBPMORTGAGE C
Aditya
Estie
Bima
Hanif
IngeA
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5/28/2018 US Subprime Mortgage Crisis
2/23
explainedA type of mortgagethat isnormally made out to borrowers(prospective homeowners) with
lower credit ratings
SUBPRIMEMORTGAGE
Interest rate charged is higherthan a conventional mortgage
Risk is reduced
credit enhan
Requires addit
insurance, or o
party agreeme
Compensation
in case the bor
defaults
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5/28/2018 US Subprime Mortgage Crisis
3/23
credit risk
decreases
CREDITENHANCEME
borrowers
credit rating
goes up
false
of g
credit
ex
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5/28/2018 US Subprime Mortgage Crisis
4/23
Reference Portfolio
Loan
Loan
Bond
Bond
ABS
ABS
ABS
CDS
CDS
CDS
Other
CDOS
Securiti
AAA
AA
A
BBB
BB+ or
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