BNET Business Dictionary
Business Definition for: Mortgage-backed Security
- a security for which a mortgage is collateral
Additional Resources
- Mortgage Backed Securities
- This tutorial summarizes and gives information about Mortgage Backed Securities. Mortgage Backed Securities are an undiscovered gem. While these securities are primarily used to provide safe income there is also the opportunity to get some capital appreciation as interest rates fall. Principal and interest from the individual mortgages are used...
- White papers
- Secondary Mortgage Market: Commercial Mortgage-Backed Securities as a Central Source of Real Estate Finance - The Current Marketplace
- This study is designed to serve investing institutions or investors who hold mortgage portfolios and/or for whom entrance into the Commercial Mortgage Backed Securities CMBS market is a possibility. The report is intended as a basic summary of some of the necessary steps and questions that investors and investing institution...
- White papers 2002-12-01
- CMOs, Duration Risk and a New Mortgage
- This article presents an alternative mortgage that retains the fixed-rate feature of a fixed-rate mortgage FRM, but accelerates the principal amortization when interest rates rise, exposing the buyer to less duration risk in a rising interest rate environment. This mortgage, labeled the adjustable amortization mortgage AAM, is shown to have...
- White papers 2000-01-01
- The Case For U.S. Mortgage-Backed Securities For Global Investors
- This article emphasizes about the U.S. Mortgage-Backed Securities for Global Investors. One of the most attractive features of MBS, and of prime importance to global investors, is their security. Mortgage-Backed Securities, whether explicitly guaranteed by the Treasury or by the two Government Sponsored Entities FNMA and FHLMC, are generally considered...
- White papers 2003-02-28
- Mortgage-Backed Securities
- A mortgage-backed security MBS is a security that is based on a pool of underlying mortgages. MBS are usually based on mortgages that are guaranteed by a government agency for payment of principal and a guarantee of timely payment. The analysis of MBS concentrates on the nature of the underlying...
- White papers
- Mortgage REIT Rating Criteria
- This paper draws methodological input from a wide range of analytical disciplines within Fitch. The mortgage REIT criterion is primarily a combination of traditional finance company and equity REIT analytics. However, meaningful input is also utilized from structured finance product areas, including commercial mortgage backed securities CMBS, residential mortgage-backed securities...
- White papers 2004-12-16
- Mortgage
- A mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on...
- Tools & templates 2007-12-01
- Commercial Mortgage-backed Securities: Prepayment and Default
- One of the major developments in real estate finance during the 1990s was the emergence of a viable market for commercial mortgage backed securities. The growth in this market has spurred greater interest in empirical and theoretical research on commercial mortgage default and prepayment. The article employs a competing risks...
- White papers 2002-02-19
- Asset Securitization in Asia
- Securitization is the transformation of illiquid assets into a security - that is, an instrument that is issued and can be traded in a capital market. Assets that have been transformed in this manner include residential mortgages, auto loans, credit card receivables, leases and utility payments. The term asset-backed security...
- White papers 2000-07-03
- Commercial Mortgage Backed Securities
- This article provides insight into commercial mortgage backed securities CMBS. CMBS are bonds that have been collateralized by a pool of commercial real estate mortgages. All of the principal and interest from the mortgages flow to bondholders over the life of the bonds. Typically CMBS trusts range in size from...
- White papers 2004-10-26
- S&P Lowers Ratings on 65 Classes of Alt-A Securities
- Michael Shedlock submits: In a completely expected move at least in this corner is yet another S&P downgrade in Alt-A mortgage backed securities. June 11, 2008-Standard & Poor's Ratings Services today lowered its ratings on 65 classes from 19 residential mortgage-backed securities RMBS transactions backed by U.S. Alternative-A (Alt-A)...
- External links 2008-06-12
- The Commercial Mortgage Backed Securities Market Flourishes as Supply Tops $130 Billion
- This article discusses the commercial mortgage market and its perspective. Issuance in the commercial mortgage backed securities CMBS market continued to show strength in the first quarter of 1997, with total volume of $6.2 billion in the period. Although issuance is slightly off from the $7.1 billion issued in the...
- White papers 2004-06-23
- GSEs, Mortgage Rates, and Secondary Market Activities
- Fannie Mae and Freddie Mac are government-sponsored enterprises GSEs that purchase mortgages and issue mortgage-backed securities MBS. In addition, the GSEs are active participants in the primary and secondary mortgage markets on behalf of their own portfolios of MBS. Because these portfolios have grown quite large, portfolio purchases as well...
- White papers 2005-01-12
- Defeasance: Now A Viable Option In New York State
- The concept of defeasance of a mortgage arises from the needs of today’s mortgage loan securitization industry, where lenders originate mortgage loans to transfer them to a special-purpose entity that issues bonds backed by the cash flow of the mortgages. To maximize the total selling price of the bonds, the...
- White papers 2001-01-01
- Mortgage Prepayment Analysis - HELOC Retention Marketing Application
- A large bank is trying to better manage their cash-flows from their mortgage portfolio by trying to identify segments or tranches within their portfolio of consumer loans that have a high probability of closing their loans or using market parlance "Prepay" their loans. They especially wanted to focus on Home...
- White papers 2008-02-14
- An Investor's Guide to Asset Backed Securities
- According to the report Asset-backed securities, called ABS, are bonds or notes backed by financial assets. Typically these assets consist of receivables other than mortgage loans, such as credit card receivables, auto loans, manufactured-housing contracts and home-equity loans. ABS differ from most other kinds of bonds in that their creditworthiness...
- White papers 2004-08-12
- Parameter Stability and the Valuation of Mortgages and Mortgage-Backed Securities
- The paper examines the effect of parameter instability on the valuation of mortgages and mortgage-backed securities. In particular, the paper prices 1997 issue mortgages subject to the 1998 bond market rally events assuming an empirically derived prepayment model constructed on data reflecting the 1993 experience and compares results to those...
- White papers 2002-06-01
- Limits of Arbitrage: Theory and Evidence From the Mortgage-Backed Securities Market
- "Limits of Arbitrage" theories require that the marginal investor in a particular asset market be a specialized arbitrageur. The paper examines the mortgage-backed securities market in this light, as casual empiricism suggests that investors in the MBS market do seem to be very specialized. It shows that risks that seem...
- White papers 2004-01-22
- Fund Manager Ackman Shorting Financial Security Assurance
- Though Financial Security Assurance FSF  is currently rated AAA, Hedge fund manager Bill Ackman thinks the company may be headed for trouble.  Bloomberg's Christine Richard points out in an article on Bloomberg.com that Ackman, who made similar (and, it turned out, largely accurate) predictions regarding monoline insurers MBIA MBI and...
- External links 2008-06-19
- Analysis of Yield Spreads on Commercial Mortgage-Backed Securities
- Yield spreads on commercial mortgage-backed securities CMBS are defined as the difference between the yield on CMBS and the yield on comparable-maturity Treasuries. CMBS yield spreads declined dramatically from 1992 until 1997, then increased in 1998 and 1999. The relationship between CMBS yield spreads and other variables is estimated in...
- White papers 2002-01-01
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