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Definition

This is a term coined for home loans that were granted, mostly in America, where the bond-holder had almost no credit rating at all. The term stands for "No Income, No Job and No Assets". After the 9/11/2001 bombing of the World Trade Center in New York, the then chairman of the Federal Reserve Bank (Fed), Alan Greenspan, brought interest rates down close to zero and this resulted in a boom in the housing market because money was so cheap. Banks and other lending institutions began lending money to people who had very poor track records and were completely uncreditworthy. This culminated in the ninja bond. These bonds were then bundled and the bundles were securitised and sold to banks all over the world. In time when these bonds failed it led to the sub-prime crisis of 2007/8.

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