03-Crisis&Macro

03-Crisis&Macro - Class Business Current Events...

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1 Class Business Current Events Homework #1 Groups Broad Overview of Financial Markets
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2 Contrast in Banking Styles Mortgage Originator Borrower Borrower Borrower Borrower Borrower Borrower Borrower Borrower Originator Portfolio Loan 1 Loan 2 Financial Intermediation With Market for MBS Wall St. Firm/Bank Loan 3 Loan 4 . . . Loan i Bankruptcy Remote Issuing Trust AAA Bond AA Bond A Bond BBB Bond Equity Piece Investor Investor Investor Investor Investor Securitization Process Typical Structure of Securitization Deal Rating Agencies
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3 Big Picture – Who/What Played a Role – Financial Institutions Commercial Banks versus Shadow Banks (I-bank or hedge-fund) – Governments •U S Foreign Governments – Regulators Federal Reserve SEC Rating Agencies (not exactly regulators but play a similar role) – Financial Markets Federal Funds, Repo market, Treasury Market,… – Securities Commercial Paper, ABS, swaps and other derivatives – Investors/Borrowers
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This note was uploaded on 11/22/2011 for the course ECONOMIC ManEc352 taught by Professor Keithvorkink during the Winter '11 term at BYU.

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03-Crisis&Macro - Class Business Current Events...

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