Collateralized debt obligation

Main Factors of the GFC. The 2008 Global Financial Crisis was built around a number of interrelated problems, which combined contributed to the emergence of a worldwide financial crisis in a more complex manner than a single factor could have. They can be identified as The Housing Bubble, Credit Market Failure, and Regulatory Failure. The US Housing Bubble The housing bubble in the United States began in the mid-1990s when people had increased their wealth from the stock market, pushing demand…

PRINCIPLE AGENT PROBLEM AND ANALYSIS OF ETHICAL ISSUES 1. Serving two clients on the opposite sides of the same deal A financial institution has an ethical obligation i.e. duty to act in the best interest of its client. This obligation is one that an agent owes its principal (the client). An agency relationship is based on trust and confidence. In essence, Paulson & Co. was the seller and IKB was the buyer of the ABACUS CDO. Goldman served…

and strong when in fact the company’s financial situation was unstable (Valukas, 2010). In 2007 when the property market started to collapse with the skyrocketing number of defaults, Lehman began to suffer huge losses and billions of dollars of bad debts were forced to be written down in the books, which led to a downfall of its financial position. At…

Current student debt is an all time high and it’s only getting worse. Current federal student debt is at 15 billion dollars with over 3 quarters of new jobs needing a post-secondary education. Though, it’s an asset having a diploma in your back pocket, not many can afford a college or university education as tuition costs continue to rise. Nevertheless, student debt not only affects student’s wallets but the mental state of mind of the body as well as the economy and the after-life of one. Even…

College Yesterday Vs, Today A college degree isn’t worth what it once was. College has changed dramatically over the last thirty years in many ways. The largest aspect is in terms of cost. Student tuition has skyrocketed since the 80’s as well as cost of living. As a result, students can’t afford to attend out of pocket and have to take out loans to get a better education. Another major change is the college mentality from the 80’s. Today most high school students feel pressured and that it’s…

S.M.A.R.T. Planning Model A woman by the name of Alice recently graduated from college, and wants to focus on producing enough income to sufficiently meet her cost of living and address the student loan debt she has acquired. Over the next ten years, though she would like to shift her focus to having a family. But in order to do so she will need to buy a home and address the need to save for her child 's education expenses. Therefore, her income will need to cover the increased expenses plus…

spent more than I earned with no savings and no job security. I made many unwise financial decisions, and I got caught up in credit card debts. However, since I got married, my husband and I decided to take control of our current financial state and work toward our future financial goal. Our financial goals include short-term goals like paying off our credit cards debt and stop using them. Our long-term goals are to save money to buy a house and invest more in the retirement saving account.…

reported high levels of stress over debt were also more likely to report a wide variety of medical issues, including headaches, depression, and lower back pain. (How Can Budgeting Affect One 's Personal Life, 2016). Personal budgeting decreases anxiety about your finances and allows you to concentrate on increasing income, hobbies, and spending time with family. (How Can Budgeting Affect One 's Personal Life, 2016). An individual may be in denial about their debt that causes stress-related…

According to the Huffington Post, nearly four out of five college students are working a part-time job while studying for their degrees. For several reasons, these students need to acquire cash and they do so by obtaining jobs around or on their campus. However, more often than not, students struggle with keeping their GPA up while putting in hours at their part-time job. Students like Keisha M. Carr, are taking up to fifteen credits a semester-the equivalent of five classes-all while putting in…

lasting effect on both their professional and personal life come when they are attempting to figure out how to get out from underneath all the company debt that is left when the decisions…