The subprime crisis in 2007 proved to be a decisive factor in the financial world and triggered a global financial crisis of unimagined proportions. This essay examines the role of asset-backed securities in the 2007/2008 financial crisis, focusing on the triggers and the process that eventually led to the bursting of the US real estate bubble. The paper also provides an overview of how the downturn in the US housing market was triggered and how the United States and the global economy slid into recession.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Asset-Backed Securities
- Overview ABS
- Securitisation process
- The Financial Crisis 2007/2008
- Trigger of the financial crisis
- Collapse in the ABS market
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the role of asset-backed securities (ABS) in the global financial crisis of 2007/2008, focusing on the factors that triggered the crisis and the process leading to the bursting of the US real estate bubble. The essay also explores the downturn in the US real estate market and how it led to a global recession.
- The role of asset-backed securities in the financial crisis
- Triggers of the 2007/2008 financial crisis
- The impact of the US real estate bubble burst
- The process leading to the global recession
- The collapse of the ABS market
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides an overview of the topic and outlines the structure of the essay. It emphasizes the significance of the 2007 subprime crisis as a catalyst for the global financial crisis. The chapter on asset-backed securities defines and explains the securitization process, shedding light on how these financial instruments function. The next section examines the triggers of the 2007/2008 financial crisis, including the role of ABS in the collapse of the US real estate market. The essay also analyzes the breakdown of the ABS market during the crisis.
Schlüsselwörter (Keywords)
The core keywords and focus topics of this paper are: asset-backed securities (ABS), financial crisis of 2007/2008, subprime crisis, real estate bubble, securitization, global recession, US real estate market, collapse of the ABS market.
- Quote paper
- Franz Bauer (Author), 2020, Asset Backed Securities. Their Role within the Financial Crisis, Munich, GRIN Verlag, https://www.grin.com/document/922971
