The Subprime Solution notes

Part 1 of 4 - Why bubbles occur explained using behavioural economics - Globalisation - capitalism - Economic Crisis or Crisis of Economics? Different narratives - Sovereign Debt Crisis versus a Private Sector debt crisis - One of the catalysts of the recent crisis: US Housing market - US Debt Explosion US housing bubble and sub-prime - Growth of sub-prime - Focus of growth in economically depressed areas - NINJA, Piggyback and ARMS - How do you define a “bubble” Introduction to behavio...

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35 pages

Written in 2019/2020

annaguitart99

Part 2 of 3 - Major players in the global financial crisis Low interest rates Financial deregulation and innovation Securitisation . originate and distribute - MBS, Mortgage backed securitisation - Post Loss Securitisation - CDOs - Collateralised debt obligations - securitisation and Moral Hazard - Credit Default Swaps - Carry trades Shadow banking - Asset Backed Conduits - SPVs and SIVs - Money market funds - Hedge funds Credit Crunch - Leverage and House prices - How the credit crunch came to...

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39 pages

Written in 2019/2020

annaguitart99

Part 3 of 4 - Who was to blame for the global financial crisis - Bankers - Risk management failure - Var and efficient markets - risk systems - stress testing - competence of top management - rating agencies - where did it all go wrong - model failure - rating agency reforms

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19 pages

Written in 2019/2020

annaguitart99

Part 4 of 4 - Ethics of the financial crisis Greed Prospect theory Self-serving bias Self-deception Ethical fading Acts of omission Ethical numbing Working with money makes you vulnerable Banking fraud How to improve ethics Banking reforms Can the Global Financial Crisis be prevented in the future

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15 pages

Written in 2019/2020

annaguitart99