Economic Insights

The United States begins the year with elections looming. Depending on who you ask, the world as we know it may cease to exist. To the contrary, we believe the end of the world is far from near; however, as we approach November 3rd, we would like to provide some context to the race and identify key issues and industries that could be most affected by the outcome.

What impact will the November 2020 Presidential elections have on the financial markets? When will an economic downturn occur? These are two questions that have been at the forefront of investors’ minds. These concerns will likely continue to grow, reaching a crescendo near next year’s election.

One of the major contributors to the 2008 credit crisis/financial crisis was the collapse of non-agency mortgage backed securitizations. In its aftermath, the business of non-agency mortgage origination and securitization by U.S. investment banks virtually ceased to exist.