Bonds & The Big Short Terms

Select examples for bonds ratings:

• 850

• AAA

• BBB

• EE

When did the tech bubble burst?

• 2001

• 2008

• 2010

• 2018

Each mortgage bond is made up of how many mortgages?

• thousands and thousands of mortages

• billions and billions of mortagages

• hundreds and hundreds of mortgages

• All of the above

When does Michael Burry expect the adjustable rates to kick in?

• 2007

• 2008

• 2010

• 2016

What are subprime mortgages?

• risky mortgages

• safe mortgages

• single family mortgages

• corporate mortgages

What does “short” means in banking terms?

• Not tall

• Too tall

• To bet against

• To insure the bet

What will a Credit Default Swap (CDS) do?

• lender (Michael Burry) buys a CDS from another investor (banks) who agrees to reimburse the lender in the case the borrower (homeowner) defaults

• borrower (Michael Burry) buys a CDS from another investor (banks) who agrees to reimburse the borrower in the case the lender (homeowner) defaults

• lender (Michael Burry) buys a CDS from another investor (banks) who agrees to profit from the lender in the case the borrower (homeowner) defaults

• lender (Michael Burry) buys a CDS from another investor (banks) who agrees to profit from the lender in the case the bank defaults

If the value of the mortgage bond goes up, what will Burry have to do?

• pay a monthly premium to the banks

• declare bankruptcy

• quit his job

• pay out of his own pocket

After visiting Deutsche Bank, Bank of America, Bear Stearns, and Credit Suisse, how much did Burry shorted the housing market by?

• 1.3 Billion

• 1.3 Million

• 3.1 Million

• 3.1 Billion

What does an ABX Index track?

• Subprime mortgage bond value

• Personal Loans

• Debt

• Government Securities