Introduction to Mortgage Backed Securities
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- เผยแพร่เมื่อ 10 ก.พ. 2025
- This module provides a brief overview of the mortgage backed securities market. The bulk of the session focuses on the most common types of securities and the mortgage loans used to create them. The final segment will introduce TBA trading, the method by which most agency pass through securities are traded.
The presentation begins with a very brief discussion of the basics of mortgages and mortgage-backed securities. This quick overview provides a context to better understand the structure of the instruments as well as the related concepts and terminology.
Building on that foundation, the bulk of the session concentrates on the most common type of mortgage-backed security, agency pass through securities. The first part of the main segment is an overview of the mortgage agencies, Fannie Mae, Freddie Mac and Ginnie Mae. That is followed by an investigation of pass through securities, which details their structure and cash flow characteristics. The discussion of pass through securities concludes with an investigation of the investment characteristics of agency pass throughs. A special focus of the discussion is the risks that are unique to mortgage backed securities.
The final portion of the session provides a brief introduction to two other MBS topics. First is an overview of the other main type of MBS, collateralized mortgage obligations. The video concludes with an introduction to the method of trading that accounts for the majority of MBS trading volume, TBA trading. It a style of trading unique to agency pass-through securities and it is quite unlike the trading of other fixed income securities.
This is the best introduction to RMBS on TH-cam!
A very belated "thank you" for your complimentary words. I hope you find other vids on my channel that are equally informative/helpful. Cheers, Doug
This is an excellent video..
It is great information...
Thanks for your complimentary comment. I hope you find other vids on my TH-cam channel equally helpful and informative
@@insidersguidetofinance1388
I will follow your educational and financial information!!!
This is phenomenal video !
Hi Priyank, Belated thanks for your gracious compliment. I hope you find other vids on my channel equally informative and useful. Just in case you don't know, the vid you commented on is one in a series of 8 vids the comprise a comprehensive intro to fixed-income markets and instruments (each one approximately an hour in length). The are also a few dozen shorter form (5-15 minutes) vids on a variety of subjects, though most are related to fixed income or derivatives. There is a yield to maturity play list than includes a deeper dive into issues related to YTM that might be of particular to you since those are topics are perhaps the greatest source of confusion and misunderstanding in the financial markets. Please share the links to the vids you enjoy with friends and colleagues to whom they may be of interest. Cheers, Doug
Great video!
Thanx! Glad you found the vid informative. Hope you'll find some other vids on my channel equally useful.
This is excellent content. THANK YOU!!!! 🙏🏼
Thanks for your kind words. Hope you find other of my vids equally informative. Cheers,
Doug
It is really helpful for understanding about mbs. thanks.
Thank you for the compliment. Glad you found it informative and helpful. I hope you find other vids on my channel equally useful. Cheers.
This will well needed to learn to understand why feds are buying 40 in mortgage bonds
The Fed is buying so many MBS that many TBA trades in agency pass-throughs are difficult to settle on a timely basis. Another example of government intrusion disrupting the market.
Ty
It is the death pledge in reality ..it appears these days nothing is 'loaned' at all the banks are broke and just have blank securities waiting for unsuspecting 'customers' to agree to and sign . This in turn creates the fund which finances everything to begin with making the 'customer' the original creditor. In reality it is a usually a special purpose trust for the purchase of a house with the mortgage coming by way of legal charge after the event, in ignorance by the 'customer' (settlor/beneficiary) as a result of misrepresentation and a lack of disclosure by the originating financial institution. Also the securitisation assigns the legal title to the SPV/SPE which has no relationship with the 'Customer'. The originating entity has no legal basis to bring a claim. It would be the SPV/SPE that would need to bring a claim in default or for foreclosure. This appears to be hidden to the customer and the courts.
Great video!
Hi Jay, belated thanx for your complement on my MBS vid. Please share the vid with any friends or colleagues to whom you think it would be interesting. I also hope you will find some of the vids on my channel interesting/informative. Cheers, Doug