Basics of Mortgage-Backed Securities

The purpose of Basics of Mortgage--Backed Securities is to provide readers with a fundamental understanding of mortgage securities as an integral part of investment in fixed--income securities. The second edition of this MBS classic provides the latest information on the U.S. residential mortgage market, adjustable--rate mortgages and mortgage pass--throughs, relative value analyses and performance characteristics. Dr. James Hu discusses the major changes within the mortgage market that may affect the fundamentals of mortgage securities. Some of these are: the recovery of the REMIC market after its collapse; the flourish of private--label securities; the growth of equity loan--backed securities and its establishment as a member of the fixed--income securities family. Also included are additional historical data for all exhibits. Mortgage pre--payment, dollar rolls, and private--label mortgage--backed securities are also addressed.