How credit cards become asset-backed bonds

By Barry Ritholtz - December 6th, 2008, 4:00PM

How credit cards become asset-backed bonds from Marketplace on Vimeo.

Mortgages aren’t the only financial instruments that get turned into securities. In this video, Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it.

All of “The Marketplace Whiteboard” videos can be accessed at www.marketplace.org and are part of “Fallout: America’s Financial Crisis,” Marketplace’s comprehensive coverage of the current financial crisis.

hat tip boingboing

PERMALINK
Category: Bailouts, Credit, Video.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “How credit cards become asset-backed bonds”

Mark E Hoffer Says:
December 6th, 2008 at 5:15 pm
BR,

you keep running stuff like this, you’ll need a “Disinfo/Agitprop”- Tab on TBP 1.1
leftback Says:
December 7th, 2008 at 12:29 pm
It’s great how the financial services kept on setting up things that would shoot them in the ass down the road. Traders are going to be able to ride the SKF for a few years before this is all over.

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