Statistically, only a small percentage of homeowners would default on their mortgage – and any losses that occurred would be more than made up for by the interest paid by other homeowners who had taken out mortgages. those seeking an income producing asset – one that paid interest) a new alternative. ![]() Investors could buy, essentially, shares in that large mortgage and they would be entitled to their share of the interest payments.īack then, hardly any investor could buy mortgages and the innovation gave bond investors (e.g. ![]() In the 1970s he took thousands of individual mortgages and combined them into one large mortgage. The Big Short opens with a brief introduction of Lewis Ranieri – the man who “invented mortgage bonds”.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |