Tag Archives: subprime borrowers

Is The US Real Estate Market Facing A New, Post-Financial Crisis, Chapter Of Moral Hazard?

housing market moral hazard

With the US housing market having recouped most of its pre-financial crisis price levels (exceeded in some markets) in conjunction with the Federal Reserve having engaged in ZIRP (zero interest rate policy) for an extended period of time, is the market once again facing a moral hazard? First, how would one define moral hazard vis a vis the real […]

Subprime Mortgages: Are Auto Loan Delinquencies Waving A Yellow Caution Flag!

subprime auto loans,subprime mortgages

As mortgage loans originated to subprime borrowers are once again on the rise, so too is the delinquency rate for subprime auto loans! So for the buyers of securities backed by either subprime mortgages or auto loans as well as for the banks originating these loans, is there a cause for concern? In other words are we […]