Examlex
__________ are general principles or explanations,whereas __________ are specific predictions.
Default Risk Premiums
The extra yield that an investor demands to compensate for the risk that the issuer of a bond may default on payment.
Treasury Bond
U.S. government debt instruments featuring fixed interest rates and long-term maturity periods exceeding ten years.
Subprime Mortgages
Loans granted to borrowers with poor credit histories, which carry higher interest rates than standard mortgages to compensate for the higher risk.
Mortgage-backed CDOs
Complex structured finance products that pool together cash flow-generating assets and repackages this asset pool into tranches that can be sold to investors, specifically focusing on mortgage-backed securities.
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