Events Detail

As risky mortgages and collateralized debt obligations (CDOs) are making headlines, new research by Joseph Mason and Joshua Rosner raises additional concerns that mortgage-linked CDOs could experience significant losses if the U.S. housing market continues to stagnate. Moreover, inadequate transparency in the rapidly-growing private label market – and a credit rating industry ill-equipped to recognize the risks of CDOs in the current environment and communicate them accurately to investors – could result in a broad financial decline, initiated by a weakening housing industry and aggravated by a retracting credit market. These initial findings stress the urgent need for further, comprehensive research in this area.

How Resilient Are Mortgage-Backed Securities to CDO Market Disruptions?
   Joseph R. Mason, LeBow School of Business, Drexel University
   Joshua Rosner, Graham Fisher & CO.

Discussants:
Tyler Yang, IFE Group
  Michael Fratantoni, Mortgage Bankers Association

Moderator:
   John C. Weicher, Director, Center for Housing and Financial Markets, Hudson Institute.