Refinancing applications at 15-month high
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The American dream of home ownership has created the world’s largest debt market - exceeding the stock and corporate bond markets combined. Mortgage-backed securities, financially engineered products of that debt, represent a unique challenge to professional investors, mortgage originators, bankers, regulators, and financial economists. This book describes the economic forces that molded the mortgage market and evaluates the variety of mortgage designs and the securities created from them. It explains each aspect of contemporary mortgages, the development of the secondary mortgage market, and the characteristics of mortgage-backed securities (passthroughs, collateralized mortgage obligations, and stripped mortgage-backed securities). The text also provides techniques for analyzing and hedging these complex securities.
5 Stars Still relevant
This book may be dated, but if you want an in depth review of the fundamentals of all types of mortgages, pass-through securities, CMOs, and MBS valuation techniques this book should be your first stop.
After reading this book, you will have the solid foundation that you need to read more advanced tomes and/or understand current developments in mortgage securitization.
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