Subprime mortgages are back - a decade after the fall of Lehman

Subprime mortgages are back - a decade after the fall of Lehman

TOne year after the collapse of Lehman Brothers, high-octane products such as those that have led to the destruction of the US bank giant are making a comeback.

A decade ago, Lehman was heavily pursuing subprime mortgage-backed loans, which were bundled into complex bundles that masked their risk and value. As a result, the company was heavily exposed to real estate movements and eventually triggered the biggest bankruptcy in US history.

These mortgage-backed securities, which have become the catalyst for the financial crisis, are attracting new investor interest. This is despite some market experts who describe the real estate market as a "bubble on a bubble".

Subprime mortgage lender, …

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