Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Abstract
This is the first of a three-case series (108-012-1 to 108-014-1). In 2007, the sharp rise in foreclosures in the US subprime mortgage market segment snowballed into a global financial crisis. Such a remarkable event is tracked in a set of three case studies. This set sensitises students to the elements of the subprime crisis. This case study is meant to introduce students to various facets of real estate securitisation from a debt perspective. It primarily emphasises the unique aspects of the US subprime mortgage market, a key segment in the fixed income universe. Debt instruments explored include adjustable rate mortgages (ARMs), residential mortgage backed securities (MBS) and collateralised debt obligations (CDOs). The focus is on how financial engineering works for corporate, as well as, social benefit. The case enables students to explore: (1) why the subprime mortgage market evolved; (2) default risk and risk-based pricing; (3) various debt instruments - both in the primary and the secondary subprime mortgage market; (4) players and structure of the US subprime mortgage industry; and (5) benefits and issues surrounding the subprime mortgage market.
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 17 pages
Data source: Published sources
About
Abstract
This is the first of a three-case series (108-012-1 to 108-014-1). In 2007, the sharp rise in foreclosures in the US subprime mortgage market segment snowballed into a global financial crisis. Such a remarkable event is tracked in a set of three case studies. This set sensitises students to the elements of the subprime crisis. This case study is meant to introduce students to various facets of real estate securitisation from a debt perspective. It primarily emphasises the unique aspects of the US subprime mortgage market, a key segment in the fixed income universe. Debt instruments explored include adjustable rate mortgages (ARMs), residential mortgage backed securities (MBS) and collateralised debt obligations (CDOs). The focus is on how financial engineering works for corporate, as well as, social benefit. The case enables students to explore: (1) why the subprime mortgage market evolved; (2) default risk and risk-based pricing; (3) various debt instruments - both in the primary and the secondary subprime mortgage market; (4) players and structure of the US subprime mortgage industry; and (5) benefits and issues surrounding the subprime mortgage market.
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Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 17 pages
Data source: Published sources