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    lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decide
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    There is more to the picture of sub-prime lenders, who of late, have been in bad press for indulging in "predatory practices", as a result of which they have suffered heavy losses in business. Many have been forced to quit. To start with, a sub-prime lender is one who lends money to high-risk individuals. But today, the biggest players, including large banks and insurance companies, are at a risk as they are losing a lot of money at the sub-prime game.

    A New Scenario

    Over the past several months, most major sub-prime lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decided

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    lt of which they have suffered heavy losses in business. Many have been forced to quit. To start with, a sub-prime lender is one who lends money to high-risk individuals. But today, the biggest players, including large banks and insurance companies, are at a risk as they are losing a lot of money at the sub-prime game.

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    Over the past several months, most major sub-prime lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decide

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    ds money to high-risk individuals. But today, the biggest players, including large banks and insurance companies, are at a risk as they are losing a lot of money at the sub-prime game.

    A New Scenario

    Over the past several months, most major sub-prime lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decide

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    are losing a lot of money at the sub-prime game.

    A New Scenario

    Over the past several months, most major sub-prime lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decide

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    lending companies, have been going through a rough patch. While some struggled to keep going, others simply closed their doors or decided to announce their bankruptcy.

    Their investment ratings have been downgraded due to the industry's legal and political risks, not to mention the financial realities of offering money to high risk borrowers, secured only by high risk, high loan-to-low-equity-value properties. But all is not lost yet. There is a strategy to aggressively create loans and then later sell them off in pools of securities, known as "securitization". This has given life to this multi-billion dollar industry, at the expense of profits.

    Equity Is Still

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