The GFC Has Greatly Reduced the Amount of MBSs Issued

question 45

Multiple Choice

The GFC has greatly reduced the amount of MBSs issued in the Australian bond market because:

• A)it became apparent that Australian MBSs did not deserve their high rating
• B)of high levels of non-performing loans
• C)of the weakness of the Australian economy
• D)these securities funded non-performing loans in the US
• E)of the loss of investor interest in MBSs resulting from the losses incurred on US MBSs.