How credit cards become asset-backed bonds

Brad Robideau of American Public Media says:

I thought your readers might be interested in Marketplace's latest "The Marketplace Whiteboard" video making the financial crisis easier to understand.

Mortgages aren't the only financial instruments that get turned into securities. In this video, Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it.

All of "The Marketplace Whiteboard" videos can be accessed at and are part of "Fallout: America's Financial Crisis," Marketplace's comprehensive coverage of the current financial crisis.