The Market Structure of Securitisation and the US Housing Bubble

Loading...
Thumbnail Image
Penn collection
Finance Papers
Degree type
Discipline
Subject
Economics
Finance and Financial Management
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Wachter, Susan
Contributor
Abstract

Housing finance and, specifically, the subprime private label securitisation market in the US, was at the epicentre of the global financial crisis. Excessive debt expansion in the run-up to the crisis resulted in credit risk, under-identified and mispriced ex ante, and in systemic risk. This paper considers the role of financial innovation in debt markets and the changing market structure of securitisation in the evolution of the US housing price bubble. New financing vehicles contributed to growing risk, but the more salient factor was the change in the structure of securitisation, which led to unsustainable levels of debt.

Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Publication date
2014-01-01
Journal title
National Institute Economic Review
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation
Collection