subprime crisis次贷危 机课件.pptVIP

An Introduction to the Subprime Crisis in the U.S. Group4 What is Subprime Crisis? It is a worldwide financial fiasco involving terms you probably heard like subprime mortgages、collateralized debt obligations、frozen credit markets and credit default swaps. Beginning in approximately 2005–2006.  Became apparent throughout 2007 and 2008. The U.S.?subprime mortgage crisis?was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2008. It was characterized by a rise in?subprime?mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages.? How did it happened? 1?IMPACT ON?CORPORATIONS AND INVESTORS 2 IMPACT ON STOCK MARKETS 3 IMPACT ON HOME OWNERS IMPACT ON?CORPORATIONS AND INVESTORS Bank corporations: Companies value their mortgageassets ?(receivables)? based?on?estimates?of?collections?from?homeowners.Companies?record?expenses?in?the?current?period?to?adjust?this?valuation,increasing their bad debt reserves and reducing earnings. Rapid or unexpectedchanges in mortgage asset valuation can lead to volatility in earnings and stock??prices. The ability of lenders to predict future collections is a complex task?subjectto a multitude of variables . Investors: Stocks or bonds of the entities above are affected by the lower earningsand uncertainty regarding the valuation of mortgage assets and related paymentcollection.?Many?investors?and?corporations?purchased?MBS?or?CDO?asinvestments and incurred related losses OnJuly 19,2007, theDow Jones Industrial Averagehit a record high, closingabove 14,000 for the first time. ByAugust 15, the Dow had dropped below theSP 500had crossed into negative territory year-to-date. Similar drops occurred invirtually every market in the world, with Brazil and Korea being hard-hit. Large dailydrops became common, with, for example, theKOSPIdropping about 7% in one day,although 2007s largest daily drop by t