Credit Risk [5]

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Bullet points include: Lots of new possibilities for insurers, asset managers, hedge funds. New markets in CDS and physical and synthetic CDOs. Also Asset Backed Securities (ABS), Retail Mortgage Backed Securities (RMBS) etc. Major risk transfer to non-banks. But did buyers really know what they were buying (and do they now)? Did it actually lead to greater stability. How effective was the risk transfer. How useful to society have such developments been?

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