Shares in the pools of securitized mortgages proved to be very safe investments, since large numbers of defaults on mortgages did not occur at the same time.

Question

Quizplus · Accepted Answer

This statement is not entirely true. The 2008 financial crisis was largely caused by widespread defaults on securitized mortgages, which led to significant losses for investors in mortgage-backed securities. While defaults may not occur all at once, they can still have a significant impact on the safety of these investments.

Shares in the Pools of Securitized Mortgages Proved to Be