Mortgage-Backed Securities 2e Hardcover - 2011

From the jacket flap

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 of2007-2008.

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.