IIPM Ranked No. 1 B-School In Global Exposre - Zee...
It only spells trouble for global finance and its auxiliary industries
The financial deepening of economies has become a major dynamic in highly developed countries. It is now spreading fast to emerging economies. The value of Global financial assets expressed as a ratio to global GDP was nearly 350% in 2006 (McKinsey 2008: 11), a ratio that jumps to 450% in a growing number of highly developed countries, from the US to Japan. More generally, the number of countries where financial assets exceed the value of their GNP more than doubled from 33 in 1990 to 72 in 2006. Securitising a broad range of types of debt is a key vehicle for this financial deepening. Government and corporate debt have been subjected to securitisation for several decades, with variable degrees of success. The extension of securitisation into consumer debt, including mortgages, took off in the 1980s in the US. Thus mortgage securitising is not new; indeed, the first mortgage-backed security was invented in 1977, though not necessarily widely used at the time.
While mortgage securitisation is not new, the current phase is an innovation that could play a critical role in the financial deepening of countries worldwide. The mark of this innovation is the extension of securitisation to include sub-prime mortgages and mortgages for low and moderate-income households. This feature makes mortgages available to a potentially vast global market, one that goes well beyond the most advanced economies and the middle and high-income classes. Extending mortgages to low-income households is a good thing – that is when finance can really be a positive social force. But it is not a good thing if the main objective of such mortgages is actually to extract whatever small savings low-income households have and are likely to spend on housing. In my reading there are four characteristics whose mix spelled trouble for global finance and its auxiliary industries (accounting, law, public relations, et al).
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
It only spells trouble for global finance and its auxiliary industries
The financial deepening of economies has become a major dynamic in highly developed countries. It is now spreading fast to emerging economies. The value of Global financial assets expressed as a ratio to global GDP was nearly 350% in 2006 (McKinsey 2008: 11), a ratio that jumps to 450% in a growing number of highly developed countries, from the US to Japan. More generally, the number of countries where financial assets exceed the value of their GNP more than doubled from 33 in 1990 to 72 in 2006. Securitising a broad range of types of debt is a key vehicle for this financial deepening. Government and corporate debt have been subjected to securitisation for several decades, with variable degrees of success. The extension of securitisation into consumer debt, including mortgages, took off in the 1980s in the US. Thus mortgage securitising is not new; indeed, the first mortgage-backed security was invented in 1977, though not necessarily widely used at the time.While mortgage securitisation is not new, the current phase is an innovation that could play a critical role in the financial deepening of countries worldwide. The mark of this innovation is the extension of securitisation to include sub-prime mortgages and mortgages for low and moderate-income households. This feature makes mortgages available to a potentially vast global market, one that goes well beyond the most advanced economies and the middle and high-income classes. Extending mortgages to low-income households is a good thing – that is when finance can really be a positive social force. But it is not a good thing if the main objective of such mortgages is actually to extract whatever small savings low-income households have and are likely to spend on housing. In my reading there are four characteristics whose mix spelled trouble for global finance and its auxiliary industries (accounting, law, public relations, et al).
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
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