Excerpt
Excerpt
The Rise and Fall of Securitization. Samuel G. Hanson, Adi Sunderam, December 2013, Paper. "The rise and fall of nontraditional securitizations—collateralized debt obligations and mortgage-backed securities backed by nonprime loans—played a central role in the financial crisis. Little is known, however, about the factors that drove the pre-crisis surge in investor demand for these products. Examining insurance companies' and mutual funds' holdings of fixed income securities, we find evidence suggesting that both agency problems and neglected risks played an important role..." Link Verified October 11, 2014