Subprime Mortgage Crisis
The municipal bond market was affected by the subprime mortgage crisis. During the crisis, monoline insurers that insured municipal bonds incurred heavy losses on the collateralized debt obligations (CDOs) and other structured financial products that they also insured. Consequently, the credit ratings of these monoline insurers were called into question, and the prices of municipal bonds fell.
Read more about this topic: Municipal Bond
Famous quotes containing the words mortgage and/or crisis:
“We are playing with fire when we skip the years of three, four, and five to hurry children into being age six.... Every child has a right to his fifth year of life, his fourth year, his third year. He has a right to live each year with joy and self-fulfillment. No one should ever claim the power to make a child mortgage his today for the sake of tomorrow.”
—James L. Hymes, Jr. (20th century)
“The people of the United States have been fortunate in many things. One of the things in which we have been most fortunate has been that so far, due perhaps to certain basic virtues in our traditional ways of doing things, we have managed to keep the crisis of western civilization, which has devastated the rest of the world and in which we are as much involved as anybody, more or less at arm’s length.”
—John Dos Passos (1896–1970)