Flavin, Thomas; Dwyer, Gerald P.; Dungey, Mardi - Department of Economics, National University of Ireland - 2011
The misevaluation of risk in securitized
financial products is central to understand- ing the Financial Crisis of 2007-2008. This paper characterizes the evolution of factors affecting collateralized debt obligations (CDOs) based on subprime mortgages. A key feature of subprime-mortgage backed...