Author Reference resources: new home loans, home loan application, repair loan, home loan modification, homes equity, load rates, lic home loan www.himloan.infoA subprime mortgage crisis:
estimated MBS and CDO in scale and the corresponding the loss rate basis, and the loss of the CDO estimate MBS scale. From 2005 to 2007 in August to subprime home loans for support of MBS trading may suffer $99 billion in damage, this period for the different slices of the cdos trade may suffer loss of $22 billion. In addition, subprime mortgage bonds back to the corresponding guarantee agencies losses.
In fact, the subprime crisis just cause psychological change in market of ammunition, such as the s&p rating company in the past few years bond rating existing in the business failures, part of the company is to issue commercial paper difficulties, and commercial Banks may suffer from the loss of bad factors in different extent led to market of liquidity preventive demand appears. Among them, the credit rating company's failure to market psychology the negative effect is particularly obvious, because Wall Street in recent years depend more and more on computers and model assessment to engage in complex securities trading, ratings companies are rating is an important variable, if rating appear problem, can lead to securities trading pricing model have a serious defect, led directly to the trade risk outbreaks.
In fact, the subprime crisis just cause psychological change in market of ammunition, such as the s&p rating company in the past few years bond rating existing in the business failures, part of the company is to issue commercial paper difficulties, and commercial Banks may suffer from the loss of bad factors in different extent led to market of liquidity preventive demand appears. Among them, the credit rating company's failure to market psychology the negative effect is particularly obvious, because Wall Street in recent years depend more and more on computers and model assessment to engage in complex securities trading, ratings companies are rating is an important variable, if rating appear problem, can lead to securities trading pricing model have a serious defect, led directly to the trade risk outbreaks.
