US Subprime market crisis – in as few a words.

The attractiveness of the subprime lending market resulted in lenders engineering special subprime products. In order that the risk (inherent) of holding subprime assets is transferred, they created/used bankruptcy remote SPVs to securitize these assets. The securitization led to increased liquidity in the housing mortgage market which fueled further subprime lending and increased housing prices… [Read more…]