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Viewing report
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Changes in Asset Allocation during the Subprime
Crisis. Edition No. 1
VDM Publishing House, Oct 2008, Pages: 60
After the dot-com bubble, nobody has imagined what
low interest rates could eventually bring: the
subprime mortgage financial crisis. The problem
started in 2006 in the United States and got to be a
global problem in July 2007. Foreclosures
followed one after the other and stock prices
collapsed. This book attempts to find out how
investors reallocated their assets during the crisis
and whether a trend can be seen. Was it the risky or
risk-free investments investors preferred? Emerging
or industrialised countries and did preferred
sectors changed at all? If this all changed, did
human emotions and cognitive biases have an effect
on the reallocation?
It is also argued whether asset reallocation happens
because of a more moderate capital allocation line.
The research also raise more quiestions: what if the
capital allocation line doesn’t get more moderate,
even though asset reallocation would confirm the
opposite?
This research should reveal the current subprime
problem and should be useful to professionals in the
field of Finance, or anyone else who may be
interested in Investments or capital flow during a
financial crisis.
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