The Rise and Fall of Mortgage Securitization*

It is generally agreed that the cause of the financial crisis in mid-2007 that produced a worldwide recession was the sudden downturn in the nonconventional (which includes subprime, Alt-A, and Home Equity Loans) mortgage backed securities market in the U.S. (Aalbers, 2008; 2009; Ashcroft and Schuermann 2008; Arestis and Karakitsos, 2009; Demyanyk and van Hemert, 2008; Sanders, 2008; … ................
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