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Securitization is the process of transforming loans and other cash flows into marketable securities. Be able to explain how this process creates mortgage-backed securities (MBS).

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Securitization is the process of transforming loans and other cash flows into marketable securities. Be able to explain how this process creates mortgage-backed securities (MBS). How is it used to create asset backed securities (ABS) from student loans and car loans? How did securitization contribute to the subprime mortgage crisis? How did CDOs and credit default swaps make the financial crisis much worse

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