Learning Module 19 of Fixed Income 11–14% of the exam
Mortgage-Backed Security (MBS) Instrument and Market Features
4 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 Time Tranching
Coming soon
- 2 Mortgage Loans and Their Characteristic Features
Coming soon
- 3 Residential Mortgage-Backed Securities (RMBS)
Coming soon
- 4 Commercial Mortgage-Backed Securities (CMBS)
Coming soon
What the exam expects you to do
- Define prepayment risk and describe time tranching structures in securitizations and their purpose.
- Describe fundamental features of residential mortgage loans that are securitized.
- Describe types and characteristics of residential mortgage-backed securities, including mortgage pass-through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type.
- Describe characteristics and risks of commercial mortgage-backed securities.