PPT-Chapter 8 Securitization and the Credit Crisis of 2007

Options Futures and Other Derivatives 8th Edition Copyright John C Hull 2012 1 Securitization Traditionally banks have funded loans with deposits Securitization is a way that loans can increase much faster than deposits. Introduction oes the advance of securitiza tiona key element in the evolution from banking to shadow banking Pozsar et al 2010 signal the decline of tr aditional banking Not necessarily for banks play a vita l role in the securitization process at a in credit markets: . When are they justified?. César . Calderón. (FPDCE), Eva . Gutiérrez. (LCSPF), . María. Soledad . Martínez. . Pería. (DECFP) and Carlos L. Vicente (FFSDR). Motivation. June 2015. 2. Total Economy. Slight improvement in economic growth in the EU in the last two years.. According to EU forecasts this will continue in 2015 and 2016.. Source. : AMECO. 4. Increased GDP volume is expected in almost all European countries in 2015.. Homework. (Passport page 16). Click Here. Homework Review. Homework. Complete . Temptations List. Calendar: When . are Bills Due? . Reconcile Bank Statement. Read Tax Resource Guide. Review Annual Credit . Steve Keen. Kingston University London. Asymmetric Return Capital. IDEAeconomics. Minsky Open Source System Dynamics. www.debtdeflation.com/blogs. “Nobody could have seen it coming…”. “. The Queen asked me. PANDEMONIUM IN THE MARKETS. DEVASTATION. SAN FRANCISCO EARTHQUAKE. Shortly after 5 a.m. on April 18, a 7.8-magnitude quake, unleashed offshore, shook the city for just less than a minute.. EVENTS IN 1906. Chapter 8 . 1. Fundamentals of Futures and Options Markets 9th Ed, Ch 8, Copyright © John C. Hull 2016. Securitization. Traditionally banks have funded loans with deposits. Securitization is a way that loans can increase much faster than deposits. October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. Up until that time, AAA rated commercial paper had . NEVER. failed.. As a result of AAA rated paper “failing” – by Aug. 2007 credit markets seized up because banks refused to extend credit – even to one another.. Journal of Economic Perspectives Vol. 23, Number 1-Winter 2009 pp., 77-100. Markus L. . Brunnermeier. Princeton University. Bursting of housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies. October 16, 2010. House prices rose rapidly from 2000 to 2006. Subprime mortgages expanded rapidly as well. Increase in house prices slowed down in 2007. Households with excessive debt began to face problems. ”*. EBA Policy Research Workshop. Philipp Koziol. ECB-UNRESTRICTED. DRAFT. *This presentation represents the . authors' personal opinions and . does . not necessarily . reflect . the views of the . The economic crisis induced by the Covid-19 pandemic stands out in term of its global scale, scope, and severity. In 2020, 95 percent of all countries experienced negative output growth. More than in the Great Depression or both World Wars. . on. . the. . Financial. . Crisis. . :. A. . one. -. Weekend. -. Reader’s. . Guide. -. --------. Gary. . Gorton. . and. . Andrew. . Metrick. Jingyu. . Wang. Sep.