And so the story continued, till the day borrowers stop repaying. Investors who bought the financial securities could be serviced.
Well, that still does not explain, why stock markets in India, fell? Here's why. . .
Institutional investors who had invested in securitised paper from the sub-prime home loan market in the US, saw their investments turning into losses. Most big investors have a certain fixed proportion of their total investments invested in various parts of the world. So...
Image: US is not the only nation to be hit by the subprime bomb. A poll by researchers Fitch has revealed 10 'sub-prime' blackspots across the UK -- areas where large numbers of homeowners with chequered credit history have been given loans -- with the worst area named as Newport in South Wales, UK. | Photograph: Matt Cardy/Getty Images
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