Basics of Mortgage-Backed Securities

The purpose of Basics of Mortgage-Backed Securities is to provide readers with a fundamental understanding of mortgage securities as an integral part of investment in fixed-income securities. The second edition of this MBS classic provides the latest information on the U.S. residential mortgage market, adjustable-rate mortgages and mortgage pass-throughs, relative value analyses and performance characteristics. Dr. James Hu discusses the major changes within the mortgage market that may affect the fundamentals of mortgage securities. Some of these are: the recovery of the REMIC market after its collapse; the flourish of private-label securities; the growth of equity loan-backed securities and its establishment as a member of the fixed-income securities family. Also included are additional historical data for all exhibits. Mortgage pre-payment, dollar rolls, and private-label mortgage-backed securities are also addressed.

About the Author. Preface. 1. Residential Mortgages. 2. The U.S. Residential Mortgage Market. 3. Mortgage Pass-Through Securities. 4. Mortgage Prepayment. 5. Basic Mortgage Math. 6. Adjustable-Rate Mortgages and Mortgage Pass-Throughs. 7. Multiclass Mortgage Pass-Throughs. 8. Private-Label Mortgage-Backed Securities. 9. Home Equity Loan-Backed Securities. 10. Analysis of Dollar Rolls. 11. Relative Value Analysis of Mortgage Securities. 12. Performance of Mortgage Securities. Index.