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His father is an executive managing director and partner in the Columbus office of Collateral Mortgage Capital, a commercial real estate investment firm.
After all, in 1983, he structured one of the first collateral mortgage obligations, and along with Lewis Ranieri at Salomon Brothers made it possible for large investors to enter the market for mortgages.
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Fixed-income market strategist Richard Gordon noted that what was more surprising than the subprime meltdown itself was "how many [lenders] refused to alter their positions despite a sure bet of an increased default rate on subprime and collateral mortgages originated in 2006".
Among the biggest participants that provide funding in this market are the money market mutual funds; they lend their cash to banks and other institutions, accepting collateral like mortgage securities in exchange.
Just as other municipalities in Michigan are finding it more difficult to borrow in the wake of Detroit's proposal to change the historical understanding of its bond obligations, so too might American families face a steeper challenge as they look to become homeowners if lenders cannot count on homes' standing as collateral behind mortgage loans.
Banks are loath to accept buildings with these junior leases, known as hak pakai, as collateral for mortgages.
That is the importance of its decision on March 16th to lend money directly to cash-strapped investment banks and brokers and to accept a broader array of collateral, including mortgage-backed and other investment-grade securities.
As a bond salesman in Houston at Marcus Stowell & Beye, Miner had gathered and compiled demographic data on holders of the collateral underlying mortgage-backed securities.
In the 1830s to the Civil War, banks served plantations and accepted enslaved blacks as collateral for mortgages, equipment, land, and for other enslaved individuals.
This credit downgrade could require A.I.G. to post billions of dollars of additional collateral for its mortgage derivative contracts.
The house is likewise the collateral for a mortgage; lenders can foreclose on borrowers in default, though with rules that differ across states.
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