Risk moonshine: credit derivatives, Part 3
[Continued from Part 1 and Part 2.]
Unbeknownst to most home borrowers, our residential capital markets have been revolutionized by the takeover of the derivatives, byproducts of securitization.
Our derivatives are sneaking up on you
In general, this risk distillation should yield more efficient use of capital, and therefore lower spreads and lower cost to [...]
