University of central Punjab Final Project Financial Markets of Pakistan SUBMITTED TO: Miss. Kainat Riaz SUBMITTD BY GROUP MEMBERS: Muhammad Zubair Humayun L1S09BBAM0057 Omer Yousaf L1F09BBaAM2037 Waqas Rafique L1F07BBAM2075 SECTION: A Washington Mutual ACKNOWLEDGEMENT In the name of Almighty Allah who is most Merciful, and who give us strength to accomplish honors. We take this opportunity
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Securitization, as we all know, is among the latest of such intermediating product. Securitization is basically defined as a financial practice of taking illiquid assets and pooling various types of contractual debts like residential mortgage, commercial mortgages, auto loans, credit card debt obligations and selling them as securities to third party investors which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Securitization helps in diversifying
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real-world economics review, issue no. 46 The housing bubble and the financial crisis Dean Baker [Center for Economic and Policy Research, USA] Copyright: Dean Baker, 2008 The central element in the current financial crisis is the housing bubble. The irrational exuberance surrounding this bubble created an environment that was ripe for the cowboy financing that got Wall Street and the country into so much trouble. Of course the cowboy financing fed into the bubble, allowing it to grow to proportions
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Paulson is worldly known as the hedge-fund manager who made billions of dollars betting against the mortgage market (nymag.com). 4. Paulson was born in Queens, New York, the son of Jacqueline and Alfredo Paulson, a Chief Financial Officer for Ruder Finn (Wikipedia). 5. Paulson teamed up with some fellow billionaires to buy one of the biggest failed specialists in nontraditional mortgages, Indy Mac Bank, from the government. The group recouped its $1.55-billion investment in the Pasadena
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Giant Pool of Money Analysis The awful subprime lending crisis is truly one of the most convoluted, wreaking messes conjured by the financial industries in the 20th century. There are so many layers of bad choices and megalomaniacal errors intertwined into this ugly event that picking out just two biases/heuristics to analyze and discuss will surely fail from being a complete analysis. Nonetheless, this is a the task at hand and, though we will not but scratch the surface of this behemoth, teasing
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explaining the entire process of how the amount will double and the interest rate will become adjustable after a couple years. This led to many subprime mortgage loan holders to not meet payments and eventually lose their home. Because of this HSBC was one of the first banks “announce a billion dollar write-off linked to its exposure to subprime mortgages.” (Modell) HSBC improved one way by advancing their technology. Data is collected and sent to one team of specialized individuals who make sure that
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situation is very important for Dream Works to run business. For example, during the U.S. subprime mortgage crisis, the income level of American people decreased and declined housing prices led to loan difficulties; however, the prices of food and other necessities were still increasing. Therefore, people might cut their non-essential expenditure, including entertainment. Recently, euro debt crisis still obstructs the recovery of global economics. Euro-Area unemployment rate is 12.1 percent in April
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developing the number of subprime loans drastically increase and were distributed at a disproportionate rate to minorities. These loans were recorded to have been distributed at a rate 1.5 times greater than that of the white population. These mortgages are known to have been given to upper-income African Americans who should have qualified
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to provide liquidity, stability, and affordability to the UNITED STATES housing and mortgage markets. Fannie Mae operates in the UNITED STATES secondary mortgage market. Rather than making home loans directly to consumers, Fannie Mae work with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates. Fannie Mae fund mortgage investments primarily by issuing debt securities in the domestic and international capital
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Strengths and weaknesses of rations A ration is a fixed allowance on provisions on any product that is needed but has a shortage. Most Times rations have occurred wars and other catastrophic events that involved a mass reduction. A ration also can be seen in cases where something is in high demand but because the producer wants to be fair, they put a limit on what can be given. There are strengths and weaknesses to some degree in each situation that may occur due to a ration be orchestrated
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