hello im currently doing an assignment on the aud vs usd, the reasons for the decreases etc etc
i thought it would be good to mention to global credit crunch etc however ive stumbled upon an issue that needs clarification
i was reading an article from radio national on the abs and have cut out a specific portion that needs explaining to me
"The global credit crunch stems from a few million dodgy mortgages in the United States, which were bundled up into bonds and securities and sold around the globe.
As a result, the market for residential mortgage backed securities has dried up and banks can't raise money for new lending".
i understand the mortgage problems, but how can something like a mortgage be bundled up into bonds/securities is my issue??
thanking you in advance