The housing finance system, while still functioning, is in a crisis. Interest rate risk premiums -- the rate increment on mortgages classified as riskier -- are two to four times as large as they were two years ago. Day-to-day rate volatility, which can cause havoc in the relationships between bo... -
At the Heart of the Chaos, A Poor Way to Manage Risk
The housing finance system, while still functioning, is in a crisis. Interest rate risk premiums -- the rate increment on mortgages classified as riskier -- are two to four times as large as they were two years ago. Day-to-day rate volatility, which can cause havoc in the relationships between bo...-
By Jack Guttentag