2008
DOI: 10.2139/ssrn.1341853
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Making Sense of the Subprime Crisis

Abstract: Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in… Show more

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Cited by 108 publications
(99 citation statements)
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“…The first was how fast home prices declined, and defaults grew. Gerardi et al (2008) show that few if any Wall Street professionals expected the housing bubble to deflate so rapidly. The second surprise was the sensitivity of the prices of AAArated securities engineered from mortgages, especially CDO's, to home prices, a phenomenon largely overlooked by the models utilized by rating agencies (Jarrow et al 2007, Coval et al 2009).…”
Section: Introductionmentioning
confidence: 99%
“…The first was how fast home prices declined, and defaults grew. Gerardi et al (2008) show that few if any Wall Street professionals expected the housing bubble to deflate so rapidly. The second surprise was the sensitivity of the prices of AAArated securities engineered from mortgages, especially CDO's, to home prices, a phenomenon largely overlooked by the models utilized by rating agencies (Jarrow et al 2007, Coval et al 2009).…”
Section: Introductionmentioning
confidence: 99%
“…Sherlund (2009) andGerardi, Lehnert, Sherlund, and among others point to a significant increase in borrower leverage during the mid2000s, as measured by combined loan-to-value (CLTV) ratios, which was soon followed by falling house prices. 6…”
Section: A1 Productsmentioning
confidence: 99%
“…It is virtually impossible to sell a toxic asset at a reasonable price, if at all. Toxic asset was a term frequently used during the banking crisis of 2007-2009 [1]- [4].…”
Section: The Overview On the Financial Assetmentioning
confidence: 99%