Product Description
An in-depth look at the latest innovations in mortgage-backed securities The largest sector of the fixed-income market is the mortgage market. Understanding this market is critical for portfolio managers, as well as issuers who must be familiar with how these securities are structured. Mortgage-Backed Securities is a timely guide to the investment characteristics, creation, and analysis of residential real estate-backed securities. Each chapter contain… More >>
Mortgage-Backed Securities: Products, Structuring, and Analytical Techniques
Compared to other books and especially handbook of mbs this book has very uniform treatment you don't feel like it is a collection of articles written by different people. The subject is discussed with detail and flow which will allow a person to put it in practice. Have not read the book from cover to cover yet but whatever random parts I read I got answers to questions I had been having for quite sometime.
Rating: 5 / 5
A well-written, easy-to-follow book that serves as a fantastic addition to any fixed income or real estate curriculum. Those already in or looking to enter the mortgage securitization business should have the information contained in this book as part of their arsenal.
Rating: 5 / 5
This book can be used either as a reference for specific technical securities questions or for generic background reading on a related topic. Many people in our office find it very useful and it always seems to disappear from my desk. A must have five star book!
Rating: 5 / 5
If you are a securities analyst wanting to understand recent innovations in financial instruments, Fabozii's topic can be very germane. He describes the myriad ways that bundling together mortgages can produce, in terms of cash flow and risk. Naturally, the book delves heavily into how well both can be modelled.
Specifically, there is a key section on how to measure prepayments and defaults. Both act against the "ideal" nature of a given instrument. Where ideal means that all debtholders will repay the debts in full and on the regular predicated schedule. We see different measures of delinquency – for example – current, 30 days delinquent, 60 days delinquent, and 90+ days delinquent. This is one very common classification, used by the US Office of Thrift Supervision. Other groups has similar measures.
Much other space in the book explains how the cash flow can be divided into tranches. Different ones based on differing yields and risk.
A cynical reader might surmise that the implementation of ideas like those in the book have contributed to the recent turmoil in the mortgage industry. Aiding and abetting.
Rating: 4 / 5
The book provides a very complete overview the residential mortgage-backed securities market and is written by two gentlemen that were arguably at "the center of the storm" at Countrywide Securities.
The book is structured nicely taking the reader from a general overview of the MBS market to a detailed look of the process of securitization through to investing in the end securities.
The chapters dedicated to the structuring and credit enhancement techniques of residential ABS deals a particularly useful to people just entering the current market. The unique perspectives on measuring loan performance and influences on collateral prepayments are also very useful reading.
All in all a must read for those beginning in the industry and a great reference for those of us that might have forgotten a few things.
Rating: 5 / 5