Mortgage Backed Securities (MBS): Part II

edX Mortgage Backed Securities (MBS): Part II

Platform
EdX
Provider
New York Institute of Finance
Effort
2 hours a week
Length
4 weeks
Language
English
Cost
$550
Part of
Course Link
Overview
In this course we’ll learn the key features of the most common types of tranches in agency CMOs:
  • Z (accrual) bond tranches
  • PAC (planned amortization class) tranches
  • TAC (targeted amortization class) tranches
We’ll cover the primary differences between non-agency and agency CMOs and identify the main types of internal credit enhancements commonly used in non-agency CMOs. We’ll also learn how to contrast credit risk, prepayment risk and the typical amount of credit enhancements for different types of collateral, especially prime jumbo and subprime mortgage securitizations.

Next, we’ll look at the structure and purpose for creating Giants (FHLMC), Megas (FNMA) and Platinum securities (GNMA) and understand what we mean by reverse mortgages. We’ll review the structural similarities and differences of commercial mortgage-backed securities (CMBS) with both agency and non-agency CMOs and look at the common features of the structured payouts on CMBS including IO strips and super-senior tranches.

This course also describes types of agency multi-family securitizations, the various ways of structuring the collateral pool and the payouts to investors and the characteristics of TBA (to be announced) trading and specified (spec) trading. We’ll review the factors that cause the prices of specified trades and TBA trades to differ, and the forward pricing of TBA trades based on (cost of) carry considerations, structure of a dollar roll, and the factors that determine the attractiveness of dollar rolls to investors holding MBS. We’ll wrap up this course with an understanding of ARMs (Adjustable Rate Mortgages) and Hybrids (Hybrid Adjustable Rate Mortgages).

This course is part 2 of the New York Institute of Finance’s Mortgage Backed Securities (MBS) Professional Certificate program. This course will begin with a review of the first course in this program, Mortgage Backed Securities (MBS): Part I.

Syllabus
  • Review of Mortgage Backed Securities Part 1: Handouts and Discussions
  • Module 10: CMO PAC and Z Bond Tranches
  • Module 11: Non-agency CMOs
  • Module 12: Other Agency
  • Module 13: Commercial Mortgage Backed Securities
  • Module 14: Agency Multifamily Mortgage Securitizations
  • Module 15: Trading and Settlement of MBS Trades
  • Module 16: Dollar Rolls
  • Module 17: Adjustable Rate Mortgages

Taught by
Douglas Carroll

[parsehtml]<a class="button" style="height: 100%; padding:14px 14px 14px 14px !important; color: white; font-size: 18px; font-weight: bold; margin-bottom: 10px;" href="https://www.edx.org/course/mortgage-backed-securities-mbs-part-ii-new-york-institute-finance-mbs2-pc2x"target="_blank">Go To Course</a>[/parsehtml]
Author
edX
Views
745
First release
Last update
Rating
0.00 star(s) 0 ratings
Top