Securitization is a financial process that transforms illiquid assets (like loans or receivables) into tradable securities that can be sold to investors.
Posts tagged as “Moral Hazard”
In third generation models, crises are driven not only by fiscal or monetary policies but also by structural financial weaknesses that magnify the impact of devaluation.
Asymmetric information is an economic concept where one party in a transaction has more or better information than the other party.
Bailouts, which are government-provided financial assistance to a failing company or industry, are a highly debated economic policy.
"Too Big to Fail" (TBTF) is an economic and political concept asserting that certain financial institutions or corporations are so large, so interconnected, and so critical to the economy that their failure would be catastrophic for the entire financial system and the wider economy.
Moral hazard is an economic problem that occurs when one party in a transaction or contract takes on more risk because they don't have to bear the full consequences of their actions.