Corporate Finance 307
CORPORATE FINANCE 307
LITERATURE REVIEW
Student Name / ID: Chay Yu Xi 15907811 Jacqueline Teo Hui Yun 15805054 Ting Heng Huat 14973837 Tutor: Leo Kee Chye Tutorial Day / Time: Monday / 2pm
Table of Contents
Abstract
The Tech Bubble Introduction
Lowering of Interest Rates
Adjustable Rate Mortgage
Securitization
Mortgage Backed Securities
Collateralized Debt Obligation
Credit Default Swap Government Reaction and Policies Emergency TARP Repercussions Basel Disadvantages Future Policy Requirements Controversy
Conclusion
Reference List
Review of the causes of the 2008 Financial Crisis in US.
Abstract
This paper seeks to summarize a stream of research that has delved into the major causes of the financial crisis in 2008. More precisely, we will be looking at a combination of causes such as the sub-prime mortgage crisis, the mortgage backed security, the collateralized debt obligation as well as how the incidental credit-default swap contributed to the incident. This paper will begin from analyzing the past, when it happened and how it built up and resulted in the financial crisis. The significance of this literature review seeks to give a simplified explanation of the financial crisis of 2008 and will be useful for the people unversed in economics or finance but wish to have a basic understanding of its causes and history.
The Tech Bubble
During the early 2000, numerous companies and individuals bought new operating systems that were Y2K-ready in fear that the “Y2K” problem would cause computer systems to malfunction. This had allowed technology companies to generate obscene amounts of revenue. At one point, the telecommunications giant, Nortel, owned one third of the stock markets in Canada (Wahl 2009). As a result, stock prices of these companies started to increase rapidly and this led to investors investing in all sorts of high tech companies, spawning the “Tech Bubble”.
The bubble
LITERATURE REVIEW
Student Name / ID: Chay Yu Xi 15907811 Jacqueline Teo Hui Yun 15805054 Ting Heng Huat 14973837 Tutor: Leo Kee Chye Tutorial Day / Time: Monday / 2pm
Table of Contents
Abstract
The Tech Bubble Introduction
Lowering of Interest Rates
Adjustable Rate Mortgage
Securitization
Mortgage Backed Securities
Collateralized Debt Obligation
Credit Default Swap Government Reaction and Policies Emergency TARP Repercussions Basel Disadvantages Future Policy Requirements Controversy
Conclusion
Reference List
Review of the causes of the 2008 Financial Crisis in US.
Abstract
This paper seeks to summarize a stream of research that has delved into the major causes of the financial crisis in 2008. More precisely, we will be looking at a combination of causes such as the sub-prime mortgage crisis, the mortgage backed security, the collateralized debt obligation as well as how the incidental credit-default swap contributed to the incident. This paper will begin from analyzing the past, when it happened and how it built up and resulted in the financial crisis. The significance of this literature review seeks to give a simplified explanation of the financial crisis of 2008 and will be useful for the people unversed in economics or finance but wish to have a basic understanding of its causes and history.
The Tech Bubble
During the early 2000, numerous companies and individuals bought new operating systems that were Y2K-ready in fear that the “Y2K” problem would cause computer systems to malfunction. This had allowed technology companies to generate obscene amounts of revenue. At one point, the telecommunications giant, Nortel, owned one third of the stock markets in Canada (Wahl 2009). As a result, stock prices of these companies started to increase rapidly and this led to investors investing in all sorts of high tech companies, spawning the “Tech Bubble”.
The bubble