中国国际投资公司的的内部资料.pptVIP

2008 Credit Crisis;The Beginnings of the Crisis;Some Terminology;Conventional Mortgage Process…;What is Securitization of Mortgages;Securitization can be a good thing..;Mortgage Securitization is not new..;Mortgages Conventional Vs. Jumbo, Alt-A, and Subprime;Subprime loans increased dramatically…;But were still a small part of all mortages..;The Subprime Mortgage Securitization Process;Source: “Understanding the Securitization of Subprime Mortgage Credit’” Ashcraft and Schuermann, Federal Reserve Bank of New York Staff Report 318, March 2008.;Source: “Understanding the Securitization of Subprime Mortgage Credit’” Ashcraft and Schuermann, Federal Reserve Bank of New York Staff Report 318, March 2008.;Source: “Money for Nothing and Checks for Free” by John Kiff and Paul Mills, IMF Working Paper, July 2007.;Creation of the M.B.Securities- A Highly Simplified illustration..;Securitization creates a distance between the investor and the borrower..;The Role of Credit Rating Agencies;Role of credit Rating Agencies- contd.;Source: “Credit Crunch of 2008,” by Paul Mizen in Federal Reserve Bank of St. Louis Review, September/October 2008, 90(5), pp. 531-567.;Structuring the Deal- the Devil in the Details;Structured Deals – Converting Subprime Loans into AAA bonds;Collateralized Debt Obligations (CDOs);Structured Deals – Each MBS and CDO is unique..;Incentive Problems in the Securitization Process;Source: “Understanding the Securitization of Subprime Mortgage Credit’” Ashcraft and Schuermann, Federal Reserve Bank of New York Staff Report 318, March 2008.;Source: “Understanding the Securitization of Subprime Mortgage Credit’” Ashcraft and Schuermann, Federal Reserve Bank of New York Staff Report 318, March 2008.;What triggered the credit crunch?;What Now?;The current bailout/rescue plan;Reverse Auctions;Alternatives to bailout plan;Alternatives to Bailout plan;No easy answers..