Overview
Here is the first user-friendly guide to valuing mortgage-backed securities in the new prepayment environment. William Bartlett offers specific guidelines for making informed decisions, focusing on the questions to ask before pursuing high-stated yield with bond classes and derivatives that may not perform well in volatile markets. The Valuation of Mortgage-Backed Securties explores: the econometric models—such as prepayment and OAS models—used by Wall Street firms to project the performance of specific MBS bond types; the many varieties of mortgage-backed securities, including those with protection features against early prepayment, default, refinancing and first calls on cash flows; how to determine which MBS issue may be appropriate for a specific portfolio objective.
Bill Bartlett's Mortgage-Backed Securities: Products, Analysis, Trading was published in 1989 to great acclaim. Now, following the recent waves of r efinancing opportunities for homeowners, experts predict a temperate housing market throughout the rest of the 1990s. As a result, institutional investors, Wall Street traders and salespeople need a new approach to measuring risk and evaluating mortgaged-backed securities in a slower prepayment environment. Bartlett's new book offers readers guidelines for making informed investing decisions in today's changed marketplace.