It actually was intellectual no matter if fake for these vendors out of CDS's to do so even though they could not make a beneficial with the future personal debt

The prices established for these ties managed to make it look that a good funds might possibly be from to invest in mortgage loans and using these to perform mortgaged-backed ties. Therefore a consult was created to have mortgages, even subprime mortgage loans. Not simply made it happen look you to definitely income would be produced when you look at the securitization off even subprime mortgages, earnings was basically becoming generated. Securitizers including Federal national mortgage association and you may Freddie Mac computer had been becoming taken into the process regarding the apparent profits of one's procedure, hence justifying its production of a market to own subprime mortgages.