American International Group (AIG) Case, should be written in an essay form of roughly one and a half page. Subject: Risk Management

Background of the Sub-Prime Crisis. Main events related to the assignment are highlighted.

Explain the securitization process

Also explain securitization cause accumulation of systemic credit risk

Explain the mechanics of CDS

Explain how CDS exposes CDS sellers (e.g. AIG) to credit risk

Explain how the subprime crises affected AIG in view of the CDS it sold