US Subprime Mortgage Market (B): Crisis and its Aftermath
Code : ECC0029
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Region : US |
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Abstract: In 2007, increased foreclosure rates in the US triggered a huge crisis - affecting the whole set of participants in subprime mortgage market. This case study - second in its series - looks into the havoc the crisis created. The focus is on how levels of intermediation, between the borrower and the investor, created huge conflicts of interest and rapid collapse of the subprime mortgage market. Sophisticated investors, including many large investment banks that have invested billions of dollars, fuel subprime mortgage market. By the end of August 2007, substantial amounts of the investors' equity capital was lost - resulting in a huge credit crisis across the world. |
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Pedagogical Objectives:
The case acts as a trigger for analysing the crisis from various perspectives:
Keywords : Microeconomics, Behavioural Finance, Finance Case Study, Derivatives and Risk Management, Accounting and Control, Working Capital Management, Leadership, US Subprime Mortgage Market, Financial Crisis
Contents :
» End of Housing Market Bubble
» Rising Foreclosures
» Effect on the Participants in the Subprime Mortgage Market
» Effect on Other Capital Markets
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