Mortgage Backed Securities (Mbs): Basic To Advanced

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

What you'll 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.

Description

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 SecuritiesPass Through SecuritiesAnalysis of Pass Through SecuritiesCollateralized Mortgage Obligations (CMOs)More about this course and StarweaverThis 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:starweaver journey builder starweaver[dot]comHappy learning.

Overview

Section 1: Introduction to Mortgages and Mortgage Backed Securities

Lecture 1 Welcome!

Lecture 2 Introduction to Mortgage Backed Securities

Lecture 3 Asset Securitization and Introduction to Mortgage Loans

Lecture 4 Mortgage Loans

Section 2: Pass Through Securities

Lecture 5 Introduction to Pass Through Securities

Lecture 6 US Mortgage Agencies

Lecture 7 Agency Underwriting Guidelines

Lecture 8 Structure of Pass Through Securities

Lecture 9 Mortgage Cash Flows Part 1

Lecture 10 Mortgage Cash Flows Part 2

Lecture 11 Mortgage Pool Cash Flows

Lecture 12 Mortgage Prepayments

Section 3: Analysis of Pass Through Securities

Lecture 13 Risks of Pass Through Securities

Lecture 14 Pass Through Securitries Prices and Yields

Lecture 15 Pass Through Securities Cash Flows and Valuation

Lecture 16 MBS Prepayments and Negative Convexity

Lecture 17 Prepayment Benchmarks

Section 4: Collateralized Mortgage Obligations

Lecture 18 Conditional Prepayment Rate and Introduction to CMOs

Lecture 19 CMOs and Sequential Pay Tranches

Lecture 20 Z Bond Tranches

Lecture 21 PAC Bond Tranches

Lecture 22 Other Types of Tranches

Section 5: Closing Remarks

Lecture 23 Take-aways

Analysts and associates in commercial, corporate and investment banking.