SECURITISATION
31 May 2016 By PDSNETWhere debt instruments like mortgage bonds are gathered under a new corporate entity and then shares in that corporate entity are on-sold. The 2008 sub-prime crisis was partly the result of retail mortgage bonds being bundled and sold in this way to banks all over the world. When the property market in America began to collapse, these securitised investments fell sharply in value undermining the balance sheets of banks all over the world.
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