Mortgage backed securities (MBS) funded the US housing bubble, while the bust resulted in
systemic risk and the Global Financial Crisis. The pricing of MBS and the ABX securitization
index failed to reveal growing credit risk. This paper draws lessons from this failure for the use
of Credit Risk Transfers (CRT) to price credit risk. The central question is would the CRT
market, as constituted today, have behaved differently than financial asset markets in the bubble
years? If no, then this is a problem. If yes, then why?
Affordable Housing Architecture Asia Borrowing Constraints Canada China Colombia Commercial Brokerage covid-19 CRE Credit Risk Transfers Debt Market Demographics Development e-Commerce Equity Market Ethnic Factors Europe Foreclosures Global Global Financial Crisis hospitality Housing & Residential Housing Supply India inflation Investing land use regulation Macroeconomics Microeconomics Mixed-Use Mobility Mortgage Rates Mortgages Multi-family Non-Traditional Mortgages office sector Political Risk Real Estate Investment Trusts Recession Rental Retail South America Sub-Prime Mortgages Sustainability United States Urban Urbanization work from home