When a Danish mortgage bank grants a mortgage it is obliged to sell an equivalent bond with a maturity and cashflow that matches those of the underlying loan almost perfectly.

当丹麦银行批准一笔抵押贷款时，它必须同时出售等额的同期限的债券，以此来完全匹配该笔借款。

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Many of the underlying mortgages were highly risky, involving little or no down payments and initial rates so low they could never amortize the loan.

有很多的按揭贷款本身就是岌岌可危的，首付很低甚至没有首付，分期偿付的额度低到永远也还不完的程度。

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Although net income dipped a bit, operating profit (a better reflection of its underlying business) rose by 17%, boosted by robust loan growth in a booming economy.

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Similarly, if a property is sold at foreclosure or in a short sale and the underlying mortgage is recourse (meaning the borrower has personal responsibility for any excess loan deficiency remaining after the sale), then to the extent the remaining deficiency is forgiven, the borrower will again recognize COD income.

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The borrowers could be hedge funds, who either are trying to short a stock or scrambling to cover a stock loan that has been called in, or they could be investment houses that need an underlying instrument for a derivatives contract.

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