Eurodollar University cover image

The world rocked by Euro$ collateral; Italy, Eurobonds, maybe the '22 equivalent of "toxic waste."

Eurodollar University

00:00

Securitization and the Subprime Mortgage Crisis

Securitization is what gave us the subprime mortgages to begin with. Even if a AAA rated bond actually is AAA rated for good reasons, it doesn't mean that it can't lose value if liquidity for that bond dries up. This was the major thing that caused all of those losses in 2008, the OTTI losses,. It wasn't actual credit losses, it was market value impairments.

Play episode from 10:15
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app