It starts with mortgage. Many Americans borrowed money to buy their own house. After the crash of the dotcom bubble in 2000s many countries including US were facing economic recession. To spur growth, they lowered interest rates. Everybody were lending …

Tags: CMO, Collateralized Mortgage Obligation, Fannie Mae, freddie mac, lehman brothers, Lewis S. Ranieri, MBS, Mortgage, mortgage crisis, Mortgage-Backed Securities, Salomon Brothers, securitization, Washington Mutual