The Nuts and Bolts of the US Subprime Mortgage Market

In a previous post, I discussed the subprime meltdown that is impacting the US real estate market. The following CNBC video (via CondoDomain) shows us how Wall Street bundles all of these individual subprime mortgages together to create something called a "mortgage derivative" which is then sold on the open market to investors.

John is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John

Published: August 27, 2007

John Pasalis - John Pasalis is the founder and President of Move Smartly, a Toronto real estate brokerage that helps buyers, sellers and investors navigate the Greater Toronto Area housing market. A frequent commentator on Toronto real estate, John has contributed to the Globe and Mail, BNN Bloomberg and the Wall Street Journal, and his work has been cited by the Bank of Canada, the IMF and CMHC.

The Nuts and Bolts of the US Subprime Mortgage Market

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