Keyword: asset-backed securities
Banks and Non-Bank Finance (5/12/2010)
Banks may be able to expand money supply through fractional-reserve loans, but more and more loans and other financing are channeled through the non-bank finance sector.
Keywords: asset-backed securities, banks, bond market, capital markets, credit expansion, debt, debt market, fractional reserve system, loans, money expansion, money market, stock markets, venture capital
Bubble Economics (6/17/2010)
Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.
Keywords: ABS, Asset-backed securities, bubble, CDO, CDS, collateralized debt obligations, credit default swaps, interest rate, mortgage-backed securities, rating agencies, securitization, subprime loans
Leveraging and Deleveraging (5/13/2010)
The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.
Keywords: ABS, asset-backed securities, CDO, collateralized debt obligation, deleverage, equity, interest rates, Leverage, leverage cycle, margin call, positive feedback