Why do banks choose to securitise their assets? Explain how securitisation may exacerbate the asymmetric information problems in the financial markets. Discuss the role of mortgage-backed securities in the financial crisis of 2007-2008

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Q: What is securitisation? Explain briefly the securitisation process and the reasons why banks choose…

A: securitization is the act of pooling together different sorts of obligation instruments (resources,…

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Q: How can the existence of asymmetric information providea rationale for government regulation of…

A: Asymmetric information is a situation the information possessed by the parties is not symmetric. In…

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A:

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A: Bank Bills : This option is correct. Bank bills, also known as banker's acceptances, are short-term…

Q: Describe the process of “securitization” in your ownwords. Was this process solely responsible for…

A: Answer: Introduction:Securitization refers to the practice of converting assets/debts (especially…

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A: ANSWER   Global financial market are becoming the increaingly connected with more linkage and…

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Q: Explain why a mortgage-backed security becomes riskier when the values of the underlying houses…

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Q: Differentiate among   ABS, MBS, CDO, CDS, and CMO. Discuss their role in the 2008 global financial…

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Q: Possession of information by one party in a financial transaction but not by the other party is…

A: answer : asymmetric information where possession of information by one party in a financial…

Q: Which of the following is one of the uses of financial instruments? means of payment store of…

A: Financial instruments are defined as monetary assets which can be purchased, created and traded.…