Even with the recent events that have occurred in this field, mortgage-backed securities (MBS) continue to comprise one of the largest securities markets in the world. However, since the publication of the first edition of Mortgage-Backed Securities, both the consumer mortgage and MBS sectors have undergone significant changes—many of them resulting directly, and indirectly, from the collapse in mortgage performance that initially appeared in late 2006 and led to the financial crisis of 2007–2008.
That's why the expert author team of Frank Fabozzi, Anand Bhattacharya, and William Berliner—who have witnessed many cycles of change in the mortgage and MBS sectors—have returned to create the Second Edition of Mortgage-Backed Securities. In it, they skillfully reassess the MBS sector in the context of the changes resulting from the crisis, as well as explore the insights gained in the post-crisis period.
Engaging and informative, this updated edition continues to address the investment characteristics, creation, and analysis of mortgage-backed securities, but now does so with the lessons and data accumulated from post-2006 events in mind. Along the way, it offers valuable insights that reflect the current market environment: reexamining prepayment behavior and analysis to describe the latest thinking on prepayment speeds and behavior, while taking into account credit and housing-related factors; and devoting an entirely new chapter to the evaluation of non-agency MBS.
Divided into four comprehensive parts, this reliable resource contains cutting-edge concepts you'll need to understand in order to succeed within this arena.
Part One: introduces the essential aspects of the mortgage and MBS markets
Part Two: discusses prepayment and default behavior, along with an array of metrics and conventions used to quantify these activities
Part Three: describes a variety of structures and tranches, along with techniques used in structuring them
Part Four: outlines the metrics and methodologies necessary to evaluate the potential risks and returns associated with mortgage-backed securities
The mortgage and MBS markets remain in a highly unsettled state, which makes a broad and sophisticated understanding of MBS markets and products essential. The Second Edition of Mortgage-Backed Securities offers you a realistic assessment of this field and will put you in a better position to excel in one of the most dynamic and challenging areas of finance.
Very disappointing. Poorly written starting from the first introductory pages. Be aware of most of the positive reviews, which must have been done by friends of the authors (I guess, since they did not review anything else on amazon). Initial section (on mortgages) is okay, but that part you find it on any financial engineering book. Nothing special or new, except that many concepts and logical connections about why things work in a certain way are already missing. The next sections on structuring are terrible: confusing, and poorly organized (it seems the authors "copied" material without being able to explain things.) If I did not know the subject matter already (a) I would not be able to understand what the book says (some of the very simple concepts are made difficult and complicated for no reason) and (b) I would understand things the wrong way (see the sections on Z-bonds, for instance, IOs, or floaters/inverse floaters), which are all a misleading representation of both market reality and underlying structuring math. Out of curiosity I checked "Wikipedia", which, in a few lines, definitely gave better, more precise and understandable definitions than the ones provides in numerous pages in the book. This book is not worth your money. Another example of a "commercial" textbook, backed by a somewhat famous name, but with no real value.
The guy next to our office was working with AFT/Intex and doing some ABS/MBS modeling. He did some presentation on the subject, but I didn't understood a word he spoke. However, the product looked interesting. So I decided to check it out in this book.
I have to say it is presented very nicely. I only read about 3/4th of the book. I have not used the knowledge for anything yet. So I cannot say how much it has helped me. But the topic is clear and well presented.
Compared to other books and especially handbook of mbs this book has very uniform treatment you don't feel like it is a collection of articles written by different people. The subject is discussed with detail and flow which will allow a person to put it in practice. Have not read the book from cover to cover yet but whatever random parts I read I got answers to questions I had been having for quite sometime.
A well-written, easy-to-follow book that serves as a fantastic addition to any fixed income or real estate curriculum. Those already in or looking to enter the mortgage securitization business should have the information contained in this book as part of their arsenal.
I think this book is the new gold standard for MBS. Unlike previous MBS books I have read, this one flows well from chapter to chapter and can actually walk someone new to the field through collateral, structuring and valuation in a logical manner. Excellent job!
The book provides a very complete overview the residential mortgage-backed securities market and is written by two gentlemen that were arguably at "the center of the storm" at Countrywide Securities.
The book is structured nicely taking the reader from a general overview of the MBS market to a detailed look of the process of securitization through to investing in the end securities.
The chapters dedicated to the structuring and credit enhancement techniques of residential ABS deals a particularly useful to people just entering the current market. The unique perspectives on measuring loan performance and influences on collateral prepayments are also very useful reading.
All in all a must read for those beginning in the industry and a great reference for those of us that might have forgotten a few things.
This book can be used either as a reference for specific technical securities questions or for generic background reading on a related topic. Many people in our office find it very useful and it always seems to disappear from my desk. A must have five star book!
Product Details :
Hardcover: 352 pages
Publisher: Wiley; 2 edition (September 21, 2011)
Language: English
ISBN-10: 1118004698
ISBN-13: 978-1118004692
Product Dimensions: 6.3 x 1.2 x 9.2 inches
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