BA 466 (BA 466)

Question 1 The financial crisis of 2008-2010 has been described as a “perfect storm” of unfavorable industry forces. a) Concisely describe the mortgage-backed security industry before the financial crisis using Porter’s 5 forces model. (Mortgage-backed securities were created and sold by investment banks, like Bear Sterns & Goldman Sachs.) b) Describe the 6 of the 7 characteristics of the general environment of the mortgage-backed security industry and give specific examples of how ...