Ninja loans (also used in German). In the wake of the subprime crisis, a term used in U.S. financial jargon for high-risk loans, especially for the purchase of real estate. The word Ninja is an abbreviation for “no income, no job, no assets”. – A significant motivation for these loans was the expectation of continued price increases, especially for residential properties. Thus, even if the sub-prime borrower defaulted, the market price of the property would exceed the outstanding loan. That is why the credit risk for the creditor (the bank) is negligible. – See balloon loan, Community Reinvestment Act, loan, nonstandard, Home Mortgage Disclosure Act, jingle mail, loan, nonrecourse, lending rule, credit card fiasco, air paper, paper, toxic, Pay Green Initiative, subprime lending, subprime housing finance, securitization, lemon trade, twenty-two-eight loan. – Cf. BaFin Annual Report 2007, p. 16 (adventurous financing channels; complicity of investment banks).

In the wake of the subprime crisis, a term used in U.S. financial jargon for high-risk loans, especially for the purchase of real estate. The word Ninja is an abbreviation for “no income, no job, no assets”. – A significant motivation for these loans was the expectation of continued price increases, especially for residential properties. Thus, even if the sub-prime borrower defaulted, the market price of the property would exceed the outstanding loan. That is why the credit risk for the creditor (the bank) is negligible. – See balloon loan, Community Reinvestment Act, loan, nonstandard, Home Mortgage Disclosure Act, jingle mail, loan, nonrecourse, lending rule, credit card fiasco, air paper, paper, toxic, Pay Green Initiative, subprime lending, subprime housing finance, securitization, lemon trade, twenty-two-eight loan. – Cf. BaFin Annual Report 2007, p. 16 (adventurous financing channels; complicity of investment banks).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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