Bear Stearns commonly used __________ as collateral when borrowing short-term funds, but its funding was cut off because prospective creditors questioned the quality of the collateral.

Question

Quizplus · Accepted Answer

Bear Stearns used mortgages as collateral when borrowing short-term funds. The financial crisis of 2007-2008 raised concerns about the quality of mortgage-backed securities, leading to a loss of confidence among creditors.

Bear Stearns Commonly Used __________ as Collateral When Borrowing Short-Term