write a detailed report
During 2007-2008, the spectacular burst of the US housing bubble ended a bullish trend in global financial markets and triggered the global financial crisis that marked a depressing end to the first decade of the 2000s.
The reason for this crisis was attributed to derivatives mainly Credit default Swaps.
In the light of the above statement you are required to write a detailed report covering the following aspects:
- Introduction.
- Discussion on major financial instruments and factors that caused the financial crisis and financial instruments which were involved.
- The existing literature on the use of collateralized debt obligations, credit default swap and securitization of debt.
- Critical discussion on the strategies used by the banking organizations which led them to default and get their business bought by other institutions.
- Your arguments in favour/against the view point that derivatives were the real cause of financial crisis or not.
- Suggest risk management solutions that would prevent such situations.
- Conclusion.