Dissertation Writers: The Big Short- Define a sub-prime mortgage
1) Who is the character Mr. Lewis Ranieri, what NYC firm did we work for and why is he important?
2) Define a sub-prime mortgage?
3) Define a credit default swap (CDS)?
5) Who is the character Mr. Mark Baum and how did he come to his investment thesis?
6) Who are the characters Charlie & Jamie and how did their investment thesis differ from Michael & Mark’s?
7) Explain how the movie explains a “sub-prime” mortgage?
8) What is a “short” trade, what outcome are you expecting, & what is a credit default swap (CDS)?
9) Name some of the NYC investment banks that sold Dr. Michael Burry Credit default swaps (CDS)?
10) Who is Mr. Jared Vennent what was his role at his investment firm? Explain his selling “prop”?
11) What was Jared’s thesis on the housing market?
12) What is a Collateral Debt Obligation (CDO) and how does it relate to seafood stew?
13)Why does Mark’s coworkers go to Miami Florida? What is a NINJA loan?
14) What’s so important about January 11, 2007?
15) What was in Vegas and why did Mark’s team and Charlie & Jamie attend?
16) What was the key date in history that each of the players’ investments paid off big? What was the event?
17) Who was on the other side of Mark’s CDS trade and why was this ironic and important?
18) What bold move did Michael Burry do while managing his hedge fund that angered several of his investors?
19) Eventually what did Michael Burry hedge fund make from their investments in CDS because of the sub-prime mortgage crisis?
20) Who was the author of the book The Big Short?