[vinboy]

hi

I've been reading some articles and they mentioned these: Mortgage-backed securities and other mortgage derivatives.

Could you please clarify what they are?

Reports say that people have made money from the sub-prime crisis by shorting Mortgage-backed securities and other mortgage derivatives. That guy is John Paulson and few other ones.

thanks alot for your time!

[David Waring]

Hi Vinboy,

Thanks for participating in the community.

I have done a series of lessons which goes into detail on this subject and you can find below:

A Simple Explanation of the Subprime Crisis Part 1

A Simple Explanation of the Subprime Crisis Part 2

Subprime Crisis Explained Simply Part 3


The question of what a mortgage backed security is, is answered in part 2. Have a look at those and let me know if you have any questions.

Best Regards,
Dave