People who worked in the financial industry on the eve of the mortgage meltdown may themselves have believed that home prices would continue to rise.

As evidenced by their own home purchases, executives who handled mortgage securitizations showed little anticipation of the subprime crisis and subsequent crash in the housing market, according to a paper published recently by economists Ing-Haw Cheng and Sahil Raina at the University of Michigan and Wei Xiong at Princeton.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.