Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities

Book Description
Mortgage-backed and asset-backed securities are fixed-income securities, like bonds, which derive their return from an underlying mortgage or basket of mortgages, or an asset or basket of assets. This market has increased from about $100 billion in 1980 to over $2.5 trillion today. Filling the void for a new book on fixed-income, Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities provides a coherent and comprehensive approach to the subject. Featuring material used by the company, this book is an ideal training tool and resource for investment professionals, institutional investors, pension fund investors, and hedge-fund investors.
Lakhbir Hayre (New York, NY) is a mortgage officer at Salomon Smith Barney, and their leading expert on mortgage-backed and asset-backed securities. He is a Certified Financial Analyst and a Doctor of Philosophy.

Download Description
Mortgage-backed and asset-backed securities are fixed-income securities, like bonds, which derive their return from an underlying mortgage or basket of mortgages, or an asset or basket of assets. This market has increased from about $100 billion in 1980 to over $2.5 trillion today. Filling the void for a new book on fixed-income, Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities provides a coherent and comprehensive approach to the subject. Featuring material used by the company, this book is an ideal training tool and resource for investment professionals, institutional investors, pension fund investors, and hedge-fund investors.
Lakhbir Hayre (New York, NY) is a mortgage officer at Salomon Smith Barney, and their leading expert on mortgage-backed and asset-backed securities. He is a Certified Financial Analyst and a Doctor of Philosophy.

Book Info
A collection of research by Salomon Smith Barney, insightfully analyzed to provide an examination of today's Mortgage-Backed Securities (MBS) and Asset-Backed Securities (ABS) markets. Serves as a training tool and resource for investors and others looking for a complete treatment of this subject.

From the Inside Flap
Mortgage-backed securities (MBSs) and asset-backed securities (ABSs) are the largest sector of today's bond market, with billions of dollars of securities traded every day. They constitute a core holding of almost all U.S. institutional fixed income investors. The authoritative Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities assembles recent research conducted by analysts at Salomon Smith Barney—as well as insightful analysis of this research—to provide a comprehensive, sophisticated, and unambiguous examination of today's MBS and ABS markets.

Organized sequentially, with self-contained chapters that can be read on their own to eliminate the confusion so often found in other books of its type, this invaluable guide is an ideal training tool and resource for investment professionals, institutional investors, pension funds, hedge funds, and all others looking for clear, concise, and complete treatment of this multifaceted subject. Look to this guide for information on topics including:

* A general framework for modeling of prepayment rates on residential mortgage loans—critical in estimating security cashflows and investment characteristics
* How the Internet is changing the mortgage origination process, and the resulting implications for prepayment patterns
* Option-adjusted spreads—the standard valuation methodology that combines prepayment and term structure models
* Collateralized mortgage obligations (CMOs), one of the largest sectors of today's market
* Nonmortgage-related ABSs, including up-to-date innovations in credit card ABSs
* MBS and collateralized mortgage-backed securities (CMBS) markets in the United Kingdom, and the rapidly growing MBS market in Australia
* Appendices that include a glossary of common terms, a guide to investor resources including Web sites, information on risk-based capital standards, and basic mortgage mathematics

The MBS and ABS market has grown to become a key area for institutional investors, and up-to-date knowledge is crucial for investment success. Let the Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities provide you with the fundamentals, characteristics, and insights you need to fully understand—and capitalize on opportunities in—today's transformed MBS and ABS marketplace.

Back Cover Copy
The Industry’s Most Comprehensive Treatment of the Modern MBS/ABS Marketplace–From the Pioneers Who Helped Create the Market

"Lakhbir Hayre’s work ranks in the top echelon of fixed income research of the past two decades. Both new entrants and seasoned market professionals can benefit from the insights compiled in this volume."–Greg Parseghian, Senior Vice President and Chief Investment Officer, Freddie Mac

"This is an enormously comprehensive study of the MBS and ABS markets by one of the most respected people in the field. Its unmatched wealth of institutional and technical detail make it an invaluable reference to anyone interested in these markets."–Richard Stanton, Associate Professor of Finance, Haas School of Business, University of California, Berkeley

"This is an excellent and comprehensive guide that is clearly required reading for anyone interested in these important financial markets. I particularly liked the many explicit examples of prepayment modeling approaches."–Francis A. Longstaff, Professor of Finance, The Anderson School, University of California, Los Angeles

High credit quality and superior returns have contributed to the growth of MBSs and ABSs in the institutional investment community. Let the Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities provide you with the expert, in-depth treatment you need to understand–and profit from–MBS and ABS investments.

About the Author
Lakhbir Hayre is a Managing Director at Salomon Smith Barney, whose responsibilities include global mortgage- and asset-backed research. He is a recognized expert on the market, has published numerous articles on the topic, and is a former Chairman of the Mortgage Research Committee of the Bond Market Association. He has a doctorate in mathematical statistics from Oxford University, and was a Professor of Statistics at the Wharton School, University of Pennsylvania, before coming to Wall Street in the mid-1980s.