Author : Daniel O. Beltran
Publisher : DIANE Publishing
ISBN 13 : 143798052X
Total Pages : 46 pages
Book Rating : 4.4/5 (379 download)
Book Synopsis Could Asymmetric Information Alone Have Caused the Collapse of Private-Label Securitization? by : Daniel O. Beltran
Download or read book Could Asymmetric Information Alone Have Caused the Collapse of Private-Label Securitization? written by Daniel O. Beltran and published by DIANE Publishing. This book was released on 2010 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key feature of the 2007-2008 financial crisis is that for some classes of securities trade has ceased. And where trade does occur, it appears that market prices are well below what one might believe to be the intrinsic value for that class of security. This seems to be especially true for those securities where the payoff streams are particularly complex (for ex., CDOs). One explanation for this is that info. about these securities intrinsic values is asymmetric, with the current holders having better info. than potential buyers. The resulting adverse selection problem can help explain why more complex securities trade at significant discounts to their intrinsic values or do not trade at all. Charts and tables. This is a print on demand report.