Structured finance
Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk using complex legal and corporate entities. This transfer of risk, as applied to the secu...
Structured finance - Wikipedia
How the careless errors of credit reporting agencies are ruining people’s lives
Their files are full of obvious mistakes that the companies are in no rush to correct.
Goldman Sachs Must Pay $5 Billion For The Sale Of Risky Mortgages Leading Up To The Financial Crisis
The Justice Department on Monday announced a $5-billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis.
Tranche
In structured finance, a tranche is one of a number of related securities offered as part of the same transaction. The word tranche is French for slice, section, series, or portion, and is cognate to ...
Credit enhancement
Credit enhancement is the improvement of the credit profile of a structured financial transaction or the methods used to improve the credit profiles of such products or transactions. It is a key part...
Credit rating agency
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likeliho...
How the careless errors of credit reporting agencies are ruining people’s lives
Their files are full of obvious mistakes that the companies are in no rush to correct.
Goldman Sachs Must Pay $5 Billion For The Sale Of Risky Mortgages Leading Up To The Financial Crisis
The Justice Department on Monday announced a $5-billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis.
Big Three (credit rating agencies)
The Big Three credit rating agencies are Standard & Poor's (S&P), Moody's, and Fitch Group. S&P and Moody's are based in the US, while Fitch is dual-headquartered in New York City and Lond...
Big Three (credit rating agencies) - Wikipedia
Covered bond
Covered bonds are debt securities backed by cash flows from mortgages or public sector loans. They are similar in many ways to asset-backed securities created in securitization, but covered bond asse...
Subprime lending
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes r...
Surety bond
A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the te...
Residential mortgage-backed security
A residential mortgage-backed security (RMBS) is a reference to the general package of financial agreements that typically represents cash yields that are paid to investors and that are supported by c...
Residential mortgage-backed security - Wikipedia
Asset-backed security
An asset-backed security (ABS) is a security whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typi...
Financial crisis of 2007-2010
The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depress...
Financial crisis of 2007-2010 - Wikipedia
Prepayment of loan
Prepayment is the early repayment of a loan by a borrower, in part or in full, often as a result of optional refinancing to take advantage of lower interest rates.In the case of a mortgage-backed secu...
Synthetic CDO
A Synthetic CDO (collateralized debt obligation) is a variation of a CDO that generally uses credit default swaps and other derivatives to obtain its investment goals. As such, it is a complex deriva...
Synthetic CDO - Wikipedia
Structured product
In structured finance, a structured product, also known as a market-linked investment, is a pre-packaged investment strategy based on derivatives, such as a single security, a basket of securities, op...
Mortgage investment corporation
A mortgage investment corporation or MIC is an investment and lending company designed specifically for mortgage lending (primarily residential mortgage lending) in Canada. Owning shares in a mortgage...
Subprime mortgage crisis
The U.S. subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009. It was triggered by a large decline in home prices, leading to...
Subprime mortgage crisis - Wikipedia
Assurance contract
An assurance contract, also known as a provision point mechanism, is a game theoretic mechanism and a financial technology that facilitates the voluntary creation of public goods and club goods in the...
Luxembourg Depositary Receipt
A Luxembourg Depository Receipts (LDR) is a certificate which represents the purchase, or ownership, of foreign assets which are deposited in a Luxembourg-based account. An LDR functions in much the s...
Commercial mortgage-backed security
Commercial mortgage-backed securities (CMBS) are a type of mortgage-backed security backed by commercial mortgages rather than residential real estate. CMBS tend to be more complex and volatile than ...
Financial asset securitization investment trust
A financial asset securitization investment trust (FASIT) was a type of special purpose entity used for securitization of any debt and issuance of asset-backed securities, defined under section 1621 o...
Subprime mortgage
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes r...
Subprime mortgage - Wikipedia
Letter of credit
A letter of credit is a document from a bank guaranteeing that a seller will receive payment in full as long as certain delivery conditions have been met. In the event that the buyer is unable to mak...
Letter of credit - Wikipedia
Mortgage-backed security
A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a mortgage, or more commonly a collection ("pool") of sometimes hundreds of mortgages. The mortgages are sold to ...
Mortgage-backed security - Wikipedia
Structured note
A structured note is an over the counter derivative with hybrid security features which combine payoffs from multiple ordinary securities, typically a stock or bond plus a derivative. A simple example...
Mortgage bond
A mortgage bond is a bond backed by a pool of mortgages on a real estate asset such as a house. More generally, bonds which are secured by the pledge of specific assets are called mortgage bonds. Mort...
Single-tranche CDO
Single-tranche CDO or Bespoke CDO is an extension of full capital structure synthetic CDO deals, which are a form of collateralized debt obligation. These are bespoke transactions where the bank and t...