Financial talk

1. What is loan securitisation? To what extent do the four major Australian bank securitize their housing loan portfolio? How does loan securitisation affect bank liability management? 2. From August 2007, global financial markets have experienced a shortage of funds in the short-term money markets, this has been described as a golbal credit crunch. a) Provide an overview of these events( eg. what happened? suggest possible reasons for the credit crunch, how were the markets affected?) b) In the light of concerns about the availability of funds in the short term moeny markets, analyse the risk implication for each of the four major banks.