Since the end of November 2006, no fewer than 23 entities specialising in high risk mortgages in the USA have filed for bankruptcy due to the inability of borrowers to cover their monthly home loan payments. Sub-prime loans provided money to individual borrowers with bad credit records, which meant higher interest rates and costs. The meltdown in the American sub-prime loan market, a market worth 1200 billion dollars, triggered losses of over 500 billion dollars on stock markets worldwide.

What does this mean for the international derivatives market, estimated at 600,000 billion dollars? How does it impact on the US dollar? More generally, what are the consequences for the global economy?


All EDHEC and ESPEME students are invited to attend.