Tag: credit-default-swaps

Tag: credit-default-swaps

1 page tagged credit-default-swaps.

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• Chapter 59: The Collapse of Investment Banking — Economics 101

  Misaligned incentives, fraudulently rated CDOs, and an unhedged insurance market drove Bear Stearns and Lehman Brothers to the brink — and beyond. This chapter explains how the principal-agent problem, credit default swaps, and moral hazard combined to trigger the 2008 global credit freeze.

Related tags

• investment-banking
• principal-agent-problem
• moral-hazard
• too-big-to-fail
• financial-crisis
• systemic-risk