The idea was to reinvent mortgages by bundling thousands of them together as the backing for new and alluring securities that could be sold as alternatives to traditional government and corporate bonds - in short, to convert mortgages into bonds.
The concept aimed to transform the mortgage market by aggregating numerous mortgages to create a new type of financial security. This approach sought to offer investors innovative alternatives to conventional bonds issued by governments and corporations, effectively turning mortgages into bond-like investments.
By bundling mortgages, financial institutions could attract investors looking for higher yields, while also spreading the risk associated with individual loans. This reinvention of mortgages not only changed the...
