Mortgage Backed Securities (MBS)
Basic to Advanced
This course will introduce you to a variety of the more commonly-encountered types of mortgage-backed securities, pass-through securities, and CMO's, as well as a lot of the concepts used to assess the attractiveness of mortgage-backed securities and a lot of the details to help understand mortgage-backed securities and how they work.
Read more
This course will introduce you to a variety of the more commonly-encountered types of mortgage-backed securities, pass-through securities, and CMO's, as well as a lot of the concepts used to assess the attractiveness of mortgage-backed securities and a lot of the details to help understand mortgage-backed securities and how they work.
This course will introduce you to a variety of the more commonly-encountered types of mortgage-backed securities, pass-through securities, and CMO's, as well as a lot of the concepts used to assess the attractiveness of mortgage-backed securities and a lot of the details to help understand mortgage-backed securities and how they work.
This course contains 21 lectures among 4 sections:
Introduction to Mortgages and Mortgage Backed Securities
Pass Through Securities
Analysis of Pass Through Securities
Collateralized Mortgage Obligations (CMOs)
More about this course and Starweaver
This course is led by a seasoned capital markets industry practitioner and executive with many years of hands-on, in-the-trenches financial markets sales, trading and analysis work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the World, providing training courses to many of the leading financial institutions and technology companies, including:
Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; Cigna; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.
Starweaver has and continues to deliver 1000s of live in person and online education for organizational training programs for new hires and induction, as well as mid-career and senior level immersion and leadership courses.
If you are looking for live streaming education or want to understand what courses might be best for you in technology or business, just google:
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Happy learning.
What's inside
Learning objectives
- Describe the characteristics and types of mortgage loans and how they are securitized into mortgage-backed securities (mbs)
- Understand the role of mbs in the broader fixed income market and how they are used in portfolio construction and asset allocation strategies
- Evaluate the suitability of different mbs for different investor objectives and risk tolerances
- Determine the appropriate pricing and valuation techniques for different types of mbs
- Analyze the impact of interest rates and prepayment rates on the value of mbs
- Analyze the performance and risk characteristics of pass-through securities and how they differ from other types of mbs
- To describe what are pass-through securities, their risks, and how prices & yields are calculated for these instruments
- Understand the mechanics of collateralized mortgage obligations (cmos), their purpose and how they are structured to manage risk and return
- Describe the characteristics and types of mortgage loans and how they are securitized into mortgage-backed securities (mbs)
- Understand the role of mbs in the broader fixed income market and how they are used in portfolio construction and asset allocation strategies
- Evaluate the suitability of different mbs for different investor objectives and risk tolerances
- Determine the appropriate pricing and valuation techniques for different types of mbs
- Analyze the impact of interest rates and prepayment rates on the value of mbs
- Analyze the performance and risk characteristics of pass-through securities and how they differ from other types of mbs
- To describe what are pass-through securities, their risks, and how prices & yields are calculated for these instruments
- Understand the mechanics of collateralized mortgage obligations (cmos), their purpose and how they are structured to manage risk and return
Syllabus
Introduction to Mortgages and Mortgage Backed Securities
Just a brief "hello" and explanation for you.
Instructor Doug Carroll introduces the course.
Read more
Syllabus
Just a brief "hello" and explanation for you.
Instructor Doug Carroll introduces the course.
This module introduces the concept of asset securitization and covers the basics of mortgage loans as a common type of securitized asset.
This module covers the basics of mortgage loans, including how they are originated, underwritten, and securitized in the financial market.
In this module, you will learn about pass through securities, including how they are used to pool and securitize various types of financial assets.
In this module, you will learn about the role of U.S. mortgage agencies in the housing market and how they work to provide financial assistance for homebuyers.
This module covers the underwriting guidelines used by mortgage agencies to determine eligibility for home loans.
This module will teach you about the structure of pass-through securities and how they work as a financial instrument.
In this module (part 1 of 2), you will learn about the cash flow dynamics of mortgages and how they are structured to generate income for investors.
In this second module on mortgage cash flows, you will learn about the various factors that can affect the performance and risk of mortgage investments.
In this module, you will learn about the cash flow characteristics of mortgage pools and how they are used in the financial market.
This module covers the concept of mortgage prepayments and how they can affect the performance and risk of mortgage investments.
This module discusses the risks associated with investing in pass-through securities, including prepayment risk and credit risk.
In this module, you will learn about the factors that influence the prices and yields of pass-through securities in the financial market.
In this module, you will learn about how to analyze and value pass-through securities using cash flow techniques.
This module covers MBS prepayments and the concept of negative convexity in fixed income securities.
In this module, you will learn about different methods for measuring and predicting mortgage prepayment rates, including the use of prepayment benchmarks.
This module covers the concept of the conditional prepayment rate and its role in the analysis and design of CMOs (collateralized mortgage obligations).
In this module, you will learn about the structure and characteristics of CMOs, including the use of sequential pay tranches to manage prepayment risk.
This module covers the structure and characteristics of Z bond tranches, which are a type of CMO tranche that is particularly sensitive to changes in prepayment rates.
In this module, you will learn about the structure and characteristics of PAC bond tranches, which are a type of CMO tranche that offer principal amortization protection to investors.
This module covers other types of CMO tranches, including IOs (interest-only) and PO (principal-only) tranches, and concludes the course.
Good to know
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Activities
Organize and review course materials
Show steps
Prepare for success by organizing and reviewing key course materials.
Show steps
-
Download and print lecture slides, notes, and handouts.
-
Organize materials into a logical structure.
-
Review materials regularly to reinforce understanding.
Refresh your understanding of fixed income concepts
Show steps
Strengthen your foundation by reviewing fixed income concepts relevant to MBS.
Browse courses on
Fixed Income
Show steps
-
Review textbooks or online resources on fixed income.
-
Solve practice problems related to bond pricing and yield calculations.
Explore online resources for mortgage-backed securities
Show steps
Enhance your knowledge of mortgage-backed securities by delving into specialized online resources.
Show steps
-
Identify reputable websites and articles that provide in-depth information on MBS.
-
Review the materials, taking notes on key concepts and industry trends.
-
Engage in online discussions or forums to exchange ideas and ask questions.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Review 'Mortgage-Backed Securities' by Frank Fabozzi
Show steps
Gain a comprehensive understanding of MBS by delving into this authoritative text, expanding your knowledge beyond the scope of the course.
View
Fixed Income Mathematics, Fifth Edition:...
on Amazon
Show steps
-
Obtain a copy of the book.
-
Read the text thoroughly, taking notes and highlighting key concepts.
-
Complete the exercises and case studies provided in the book.
Discuss mortgage-backed security case studies
Show steps
Enhance your understanding of MBS through collaborative discussions with peers, analyzing real-world examples.
Show steps
-
Form study groups with classmates.
-
Select case studies of MBS issuances and analyze their structures, performance, and market impact.
-
Present your findings and engage in discussions with your group, sharing insights and perspectives.
Calculate mortgage-backed security prices
Show steps
Reinforce your comprehension of mortgage-backed security pricing by working through sample calculations.
Show steps
-
Find sample mortgage-backed security data online or in textbooks.
-
Use the data to calculate the price of the security using the methods learned in the course.
-
Compare your results to published prices or those provided by your instructor.
Attend an industry workshop on mortgage-backed securities
Show steps
Gain practical insights into the MBS industry by attending a workshop led by experts.
Show steps
-
Research industry workshops and conferences on MBS.
-
Register and attend the workshop.
-
Engage in discussions with experts and practitioners.
Develop a hypothetical mortgage-backed security issuance plan
Show steps
Solidify your understanding of MBS issuance by creating a hypothetical issuance plan that reflects real-world practices.
Show steps
-
Define the purpose and objectives of the MBS issuance.
-
Determine the underlying pool of mortgages and their characteristics.
-
Structure the MBS, including tranche allocation and interest rate characteristics.
-
Prepare a prospectus or offering document that outlines the terms and conditions of the issuance.
Organize and review course materials
Show steps
Prepare for success by organizing and reviewing key course materials.
Show steps
- Download and print lecture slides, notes, and handouts.
- Organize materials into a logical structure.
- Review materials regularly to reinforce understanding.
Refresh your understanding of fixed income concepts
Show steps
Strengthen your foundation by reviewing fixed income concepts relevant to MBS.
Browse courses on
Fixed Income
Show steps
- Review textbooks or online resources on fixed income.
- Solve practice problems related to bond pricing and yield calculations.
Explore online resources for mortgage-backed securities
Show steps
Enhance your knowledge of mortgage-backed securities by delving into specialized online resources.
Show steps
- Identify reputable websites and articles that provide in-depth information on MBS.
- Review the materials, taking notes on key concepts and industry trends.
- Engage in online discussions or forums to exchange ideas and ask questions.
Review 'Mortgage-Backed Securities' by Frank Fabozzi
Show steps
Gain a comprehensive understanding of MBS by delving into this authoritative text, expanding your knowledge beyond the scope of the course.
View
Fixed Income Mathematics, Fifth Edition:...
on Amazon
Show steps
- Obtain a copy of the book.
- Read the text thoroughly, taking notes and highlighting key concepts.
- Complete the exercises and case studies provided in the book.
Discuss mortgage-backed security case studies
Show steps
Enhance your understanding of MBS through collaborative discussions with peers, analyzing real-world examples.
Show steps
- Form study groups with classmates.
- Select case studies of MBS issuances and analyze their structures, performance, and market impact.
- Present your findings and engage in discussions with your group, sharing insights and perspectives.
Calculate mortgage-backed security prices
Show steps
Reinforce your comprehension of mortgage-backed security pricing by working through sample calculations.
Show steps
- Find sample mortgage-backed security data online or in textbooks.
- Use the data to calculate the price of the security using the methods learned in the course.
- Compare your results to published prices or those provided by your instructor.
Attend an industry workshop on mortgage-backed securities
Show steps
Gain practical insights into the MBS industry by attending a workshop led by experts.
Show steps
- Research industry workshops and conferences on MBS.
- Register and attend the workshop.
- Engage in discussions with experts and practitioners.
Develop a hypothetical mortgage-backed security issuance plan
Show steps
Solidify your understanding of MBS issuance by creating a hypothetical issuance plan that reflects real-world practices.
Show steps
- Define the purpose and objectives of the MBS issuance.
- Determine the underlying pool of mortgages and their characteristics.
- Structure the MBS, including tranche allocation and interest rate characteristics.
- Prepare a prospectus or offering document that outlines the terms and conditions of the issuance.
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