collateralized debt obligation extending or increasing the housing bubble investment-grade ratings single pool Securities with lower priority
What is the name of the securities that enabled financial institutions to obtain investor funds to finance subprime? What was the outcome of collateralized debt obligations? What type ratings did securities first in line receive from rating agencies? What type pool do collateralized debt obligations place their payments from mortgages into? What securities had lower credit ratings but potentially a higher rate of return?
The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into a single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested.
question: What is the name of the securities that enabled financial institutions to obtain investor funds to finance subprime?, answer: collateralized debt obligation | question: What was the outcome of collateralized debt obligations?, answer: extending or increasing the housing bubble | question: What type ratings did securities first in line receive from rating agencies?, answer: investment-grade ratings | question: What type pool do collateralized debt obligations place their payments from mortgages into?, answer: single pool | question: What securities had lower credit ratings but potentially a higher rate of return?, answer: Securities with lower priority