Over the course of the last month I have attended not
one, but two events focused on the inevitability of the next
financial crisis. The consensus, from a number of high profile
panellists, was that it was likely to once again come in the
structured finance space.
Bar the most sceptical, the 2008 crisis is generally
attributed to over-lending in the mortgage market: customers
with poor credit ratings were allowed large sums of money they
had little hope of ever repaying. Today, it may not follow the
exact same route – but things feel very similar. This
begs the question: why are...