Profit and Risk under Subprime Mortgage Securitization

<table class="table-group" id="tab3"><tr><td><table class="table"><tr><td class="thead-hr" colspan="4"><hr/></td></tr><tr><td align="center" colspan="4">Subprime-related CDO volumes</td></tr><tr><td align="left"> Vintage</td><td align="center">Mezz RMBS CDOs</td><td align="center"> High srade RMBS CDOs</td><td align="center"> All CDOs</td></tr><tr><td align="center" colspan="4"><hr/></td></tr><tr><td align="left"> 2005</td><td align="center"> 27</td><td align="center"> 50</td><td align="center"> 290</td></tr><tr><td align="left">2006</td><td align="center"> 50</td><td align="center"> 100</td><td align="center"> 468</td></tr><tr><td align="left">2007</td><td align="center"> 30</td><td align="center"> 70</td><td align="center"> 330</td></tr><tr><td align="left">2008</td><td align="center"> 30</td><td align="center"> 70</td><td align="center"> 330</td></tr><tr class="table-tr"><td colspan="4"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

Subprime-related CDO volumes; source: [<a href="/journals/ddns/2011/849342/#B27">23</a>].

Discrete Dynamics in Nature and Society

Profit and Risk under Subprime Mortgage Securitization

Table 3