Subprime mortgage crisis/Related Articles: Difference between revisions

Revision as of 10:18, 31 October 2008

See the related articles subpage to the article on economics [1] for an index to topics referred to in the economics articles.]

Fannie Mae [r]: (Federal National Mortgage Association) US government-sponsored enterprise created to provide financial support to Savings and Loans. Privatised in 1968. ^[e]
Freddie Mac [r]: (Federal Home Loan Mortgage Corporation) Fannie Mae clone created to provide competition to Fannie Mae. ^[e]
Hedging [r]: Protecting against price changes by simultaneously buying(/selling) an asset and making a futures contract to sell(/buy) it. ^[e]
Hedge fund [r]: A limited-membership, aggressively-managed investment fund, often escaping regulation. ^[e]
Savings and loans [r]: US mortgage-lenders. American counterpart to British building societies. ^[e]
Securitisation [r]: The conversion of a cash flow into a marketable security (usually a claim upon debt repayments) and often categorised according to the expected risk of default (examples include collateralised debt obligations and structured investment vehicles.) ^[e]
Structured investment vehicle [r]: (SIV) a fund that borrows money - usually at LIBOR rates - by the issue of asset backed commercial paper and uses it to finance longer term loans at higher interest rates. ^[e]
Subprime lending [r]: Lending at interest rates above the prime rate because of an above-minimal risk of default. ^[e]

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 ==Glossary==
-{{r|ABCP}}
-{{r|Agency cost}}
-{{r|Arbitrage}}
-{{r|Basel I & Basel II}}
-{{r|Building society}}
-{{r|Capital adequacy ratio}}
-{{r|CDO}}
-{{r|CDS}}
-{{r|Central Bank}}
-{{r|CMO}}
-{{r|Commercial paper}}
-{{r|Credit risk}}
-{{r|Debt_instrument}}
-{{r|Derivative (finance)|Derivative}}
-{{r|Discounting}}
-{{r|Discount_rate}}
-{{r|Discount window}}
 {{r|Fannie Mae}}
-{{r|Financial_regulator}}
-* Gearing: see Leverage
 {{r|Freddie Mac}}
 {{r|Hedging}}
 {{r|Hedge fund}}
-{{r|Interbank market}}
-{{r|Interest rate risk}}
-{{r|Leverage}}
-{{r|LIBOR}}
-{{r|Liquidity}}
-{{r|Liquidity risk}}
-{{r|Margin account}}
-{{r|Margin call}}
-{{r|Market risk}}
-{{r|Money market}}
-{{r|Moral hazard}}
-{{r|Option}}
-{{r|Portfolio insurance}}
-{{r|Prime rate}}
-{{r|Recession (economics)}}
-{{r|Reserve ratio}}
-{{r|Risk premium}}
-{{r|Roll-over}}
 {{r|Savings and loans}}
 {{r|Securitisation}}
-{{r|Selling short}}
 {{r|Structured investment vehicle}}
 {{r|Subprime lending}}
-*Swap: see CDS
-{{r|TARP}}
-{{r|Value at risk}}
-{{r|Warrant}}
-{{r|Wholesale banking}}