White Collar Crime - The Impact Part 6
Part 1, Part 2, Part 3, Part 4, Part 5
Has your mortgage been securitised? MSC
Margin call another good piece of work showing the inner workings of an investment firm during a 24 Hour period of the financial crash gives us an insight as to how these financial disaster scenarios play out.
What it doesnt show directly is that the impact of the housing market crash indirectly impacts pension schemes and bonds that support these schemes as no one knows exactly what is within them.
A mortgage backed security contains thousands or hundreds of thousands of loans but each is only identified by its loan agreement number, no mention of risk.
This is the Ratings Agency job. See Part 5 S&P Big Short Video.
Each MBS can be sold on many times over and what it represents can be lost in the thread of sales. The audit trail transparency is weak.