Mention “Asset-backed securities” (ABS) to certain finance professionals and investors, and the turmoil of the 2008 Financial Crisis immediately comes to mind. The causes of this generation’s version of The Great Depression have been thoroughly documented, ranging from a low-interest rate environment to a lack of transparency in the collaterization of subprime mortgages that served as the underlying assets for trillions of dollars’ worth of securities.
This post was originally published on this website.
