Americans who spend in advance encounter "generous" banks. Subprime loan-loan with second recourse to collateral. Why did they invent this kind of loan? Because the interest rate of this kind of loan is higher than that of ordinary loans, there are certainly risks. In fact, subprime loans have existed for a long time, first appeared in the United States in the 1980s, and were used for leveraged buyouts of enterprises. The so-called leveraged buyout is just like borrowing money to buy a house. People who want to buy a business don't have enough money, so they have to borrow some money from the bank to pay for the business. In order to ensure the safety of the loan, the general bank needs to use the assets of the purchased enterprise as a guarantee before agreeing to the loan; If the loan secured by the assets of the enterprise and the buyer's own funds is not enough, the buyer of the enterprise must seek a loan that can accept higher risks-subprime secured loan. The collateral of this loan is the residual value (if any) after the assets are sold to repay the secured loan when the enterprise goes bankrupt. ); Because only the residual value of assets can be guaranteed, this kind of loan is naturally risky and the interest is naturally high.