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Leveraged Instruments, Their Credit Ratings, and Other Unorthodox Practices

  • Dimitris N. Chorafas
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

To appreciate the wider impact of the debacle in subprime mortgages it is important to understand the explosion in supply of leveraged financial instruments; also, the negative aftermath of a steady policy of low interest rates and low credit ratings which followed the year 2000 stock market bubble. A combination of these factors saw to it that between 2001 and 2005, the annually issued amount of securitized mortgages of all sorts tripled in terms of dollar value.

Keywords

Credit Risk Credit Rating Hedge Fund Credit Spread Sovereign Wealth Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 4.
    D.N. Chorafas, An Introduction to Derivative Financial Instruments. McGraw-Hill, New York, 2008.Google Scholar
  2. 5.
    Merrill Lynch, Global Research Highlights, 29 June 2007.Google Scholar
  3. 7.
    Merrill Lynch, European Equity Strategy, 14 August 2007.Google Scholar
  4. 11.
    D.N. Chorafas, Management Risk: The Bottleneck is at the Top of the Bottle. Palgrave Macmillan, London, 2004.CrossRefGoogle Scholar

Copyright information

© Dimitris N. Chorafas 2009

Authors and Affiliations

  • Dimitris N. Chorafas
    • 1
  1. 1.New York Academy of SciencesUSA

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