Title: Securities Regulation / Edition 7
Author: Niels B. Schaumann
Even with the recent events that have occurred in this field,mortgage-backed securities (MBS) continue to comprise one of thelargest securities markets in the world. However, since thepublication of the first edition of Mortgage-Backed Securities,both the consumer mortgage and MBS sectors have undergonesignificant changes—many of them resulting directly, andindirectly, from the collapse in mortgage performance thatinitially appeared in late 2006 and led to the financial crisis of20072008. That’s why the expert author team of Frank Fabozzi, AnandBhattacharya, and William Berliner—who have witnessed manycycles of change in the mortgage and MBS sectors—have returnedto create the Second Edition of Mortgage-Backed Securities. In it,they skillfully reassess the MBS sector in the context of thechanges resulting from the crisis, as well as explore the insightsgained in the post-crisis period. Engaging and informative, this updated edition continues toaddress the investment characteristics, creation, and analysis ofmortgage-backed securities, but now does so with the lessons anddata accumulated from post-2006 events in mind. Along the way, itoffers valuable insights that reflect the current marketenvironment: reexamining prepayment behavior and analysis todescribe the latest thinking on prepayment speeds and behavior,while taking into account credit and housing-related factors; anddevoting an entirely new chapter to the evaluation of non-agencyMBS. Divided into four comprehensive parts, this reliable resourcecontains cutting-edge concepts you’ll need to understand in orderto succeed within this arena. Part One: introduces the essential aspects of the mortgage andMBS markets Part Two: discusses prepayment and default behavior, along withan array of metrics and conventions used to quantify theseactivities Part Three: describes a variety of structures and tranches,along with techniques used in structuring them Part Four: outlines the metrics and methodologies necessary toevaluate the potential risks and returns associated withmortgage-backed securities The mortgage and MBS markets remain in a highly unsettled state,which makes a broad and sophisticated understanding of MBS marketsand products essential. The Second Edition of Mortgage-BackedSecurities offers you a realistic assessment of this field and willput you in a better position to excel in one of the most dynamicand challenging areas of finance.