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by mcarmichael
1201 days ago
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The really troublesome securities of the Global Financial Crisis were complex derivatives of private-label, almost universally sub-prime, asset-backed-securities: https://en.wikipedia.org/wiki/Collateralized_debt_obligation The standardized, so-called "agency" MBS on the SVB books really isn't anything like that CDO plague. In 2008, people were losing faith in the ability to even assign valuations to CDOs; SVB's problem with their MBS portfolio is that the current market valuation is obviously not what they needed it to be just now. |
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