A collateralized debt obligation (CDO) is a complex financial product backed by a pool of loans and other assets and sold to institutional investors.

The subprime meltdown includes the economic and market fallout following the housing boom and bust from 2007 to 2009.

CDOs are structured debt instruments and when comprised of mortgages are known as mortgage-backed securities (MBS).

Read on to find out more about each individual player and what role they played in the crisis. Key Takeaways. The subprime mortgage crisis was the collective ...

Mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) are technically two different financial instruments, though they share many ...

A subprime mortgage is normally issued to borrowers with lower credit ratings. It typically carries a higher interest rate that can increase over time.

Key Takeaways. The stock market and housing market crashes of 2008 trace their origins to the unprecedented growth of the subprime mortgage market that began in ...

In the early and mid-2000s, high-risk mortgages became available from lenders who funded mortgages by repackaging them into pools that were sold to investors.