Reported 8 months ago
A hedge fund recently conducted trades resembling those seen during the 2008 crisis, involving the sale of insurance on a loan portfolio to U.S. lenders and then redistributing that risk to investors. These re-securitization transactions are reminiscent of the complex financial products blamed for the 2008 crisis, indicating a revival of certain risky Wall Street practices. While the current deals come with more protections compared to crisis-era transactions, experts warn that they may still hide problems within the banking system, potentially making balance sheets appear healthier than they actually are.
Source: YAHOO