Coronavirus and the Great Recession of 2008: Parallels in the ABS Market

This article explores the parallels of the 2008 Great Recession with the financial distress recently caused by the coronavirus crisis, in creating litigation investment opportunities in the asset-backed securities market - the former with respect to residential mortgage-backed securities, and the latter focusing on bonds backed by auto loans.

After the 2008 financial crisis, the world of residential mortgage-backed securities ("RMBS") was a well-spring of litigation. Over the last ten or so years, trustees, investors, and insurers brought scores of lawsuits - some involving billions of dollars - against the lenders whose shoddy mortgage practices led the economy into crisis.

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If you have any questions about the issues addressed in this memorandum, or if you would like a copy of any of the materials mentioned in it, please do not hesitate to reach out to:

Harvey Wolkoff
Email: harveywolkoff@quinnemanuel.com
Phone: +1 617-712-7108

Brian Shaughnessy
Email: brianshaughnessy@quinnemanuel.com
Phone: +1 617-712-7107