Subprime Lending

Study: Mortgage Risk Exposes CDOs to Significant Potential Losses 

Risk in the U.S. mortgage market may have been severely understated for years, according to market analysts in a paper presented late Thursday at Hudson Institute, a public policy research organization. Drexel University’s Joseph Mason and housing analyst Joshua Rosner from Graham Fisher & Co. unveiled new research which raises concerns that mortgage-linked collateralized debt obligations (CDOs) are exposed to significant and unanticipated losses if the U.S. housing market continues to stagnate.