Adjustable-rate subprime mortgages originated in 2006 have performed the worst, with some of them defaulting after only one or two payments (or even no payment at all). Relative to earlier vintages, more of these loans  BIS Review 120/2007  1  carried greater risks beyond weak borrower credit histories – including very high initial cumulative loan-to-value ratios and less documentation of borrower income.
Global financial crisis and monetary policy The global financial crisis, as we all know, started in the financial sector but has eventually led to fiscal crises in many advanced economies, not to mention a global recession. In response to the crisis, central banks around the world undertook a wide range of measures.