Mortgage Backed Securities (MBS): Basic to Advanced

Financial Markets | MBS | Asset Securitization | Mortgage Loans | Cash Flows | CMOs | PAC Bond Tranches

Created by: Starweaver Instructor Team
Learning | Doing | Connecting®

Created by: Paul Siegel
Top rated instructor and course creator

What Will I Learn?

• 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

Requirements

• Knowledge of the English language.
• Participants are expected to have basic math knowledge coming into this course.
• A financial calculator is recommended to get the most out of this course.

Target audience

• Analysts and associates in commercial, corporate and investment banking.