Explain Commercial Mortgage-Backed Securities (CMBSs)?

Q: What is the major difference between a CMO and the other types of mortgage-related securities?

A: Mortgage-backed securities are special investment proposals generated by financial intermediaries to…

Q: Explain Coupon Rates, Interest Rates, and Number of Seasoned Mortgages in Pools?

A: Coupon rate: The total yield annually from fixed-income security is called a coupon. And the rate at…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: Illustrates cash flow patterns that are important when evaluating mortgagepass-through securities?

A: Mortgage pass-through securitiesSecurity is formed when an individual or number of mortgage holders…

Q: Explain Marking the Mortgage Portfolio to Market?

A: Marking to market is the process of offsetting a buyer or seller’s position in a futures contract on…

Q: where do the collateral and security in the mortgage market belong? a. securities b. properties…

A: Collateral and security in the mortgage market belong to a. securities.

Q: in layman's terms, what is the diff. between a mortgage backed security and a credit default swap?

A: The borrowings made for purchasing fixed-assets like land, property, home and apartments is…

Q: Which are the major types of mortgage-backed securities currently in use?

A: Following are the major types of mortgage-backed securities currently in use: Pass-through MBS It…

Q: What is a mortgage-related security?

A: Mortgage-related security: A mortgage-related security is a kind of asset-backed security which is…

Q: Explain Some Closing Observations of Residential Mortgage-Related Securities?

A: Answer: A residential mortgage related securities is also called as residential mortgage backed…

Q: Briefly explain mortgage securitization and how it contributed to the economic crisis.

A: Mortgage securitization is the process of converting the loan into investment as purchasing the bond…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: Explain Mortgage-Equity Approach?

A: Mortgage-Equity Approach: It has advanced for quite a while. It is a numerical technique, in view of…

Q: Explain the Characteristics of Mortgage Pass-Through Securities?

A: Mortgage Pass-Through Securities Likewise called a pass-through, a security that is made when at…

Q: Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other…

A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…

Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…

A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…

Q: Explain further the effects/impacts of default on asset-backed security (ABS) to the financial…

A: The question is based on the concept of asset-backed security (ABS). ABS is a financial instrument…

Q: In regarding the Asset backed securities & Mortgage backed securities: 1- What is the utility using…

A: Asset-backed securities  are financial instruments that are backed by income-producing assets such…

Q: residential mortgages and those backed by commercial mortgages

A: It’s easy to work out that if you’re applying for a mortgage for your business, you must be applying…

Q: Explain the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: Which is the group of mortgage pools?

A: Mortgage pools: It is a group of mortgages held as security for mortgage backed security. In…

Q: Explain Mortgage pay-through bonds (MPTBs)?

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Define the Convertible Mortgages with example?

A: A convertible mortgage is a loan which starts as an adjustable rate mortgage and can be changed into…

Q: What is the major difference between CMOs and the other mortgage-backed securities?

A: Investment in securities are traded on Secondary Market where buyer and seller purchase or sale…

Q: Which of the following are reasons that the actual prepayment rate on a specific mortgage pool…

A: PSA (Public Securities Association Standard Prepayment Model) is referred to as an assumed monthly…

Q: Explain Pricing Mortgage-Backed Bonds with example?

A: The question is based on the concept of mortgage backed bonds and pricing of these bonds. The…

Q: Explain Inflation, Mortgage Pricing, and Payment Structuring

A: Inflation:  Increase in price of the good is called inflation. When inflation increases, the…

Q: What are some types of credit derivatives?

A: A credit derivative is a type of financial contract where credit assets are kept as an underlying…

Q: Explain Mortgage pass-through securities (MPTs)?

A: Mortgage pass through securities are also known as pass through securities are mortgage backed…

Q: Explain Collateralized mortgage obligations (CMOs)?

A: Collateralized mortgage obligation is referred to as complex debt security  that directs the…

Q: Explain Mortgage-backed bonds (MBBs)?

A: It is a type of  security which is backed by assets which is secured by group of mortgages. The…

Q: how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and…

A: Mortgage is a type of debt instrument which is generally secured by collateral. A borrower has to…

Q: When will investors contact their brokers to buy or sellthe securities?

A: Securities:-Securities are those instruments that float in the money market. Investors and brokers…

Q: Explain Important Characteristics of Mortgage Pools?

A: Mortgage pool:   Mortgage pool consist of combination of number of mortgages as its name explains.…

Q: Name the major types of credit enhancement used for commercial-backed mortgage securities.

A: The commercial mortgage backed securities or CMBS are a class of mortgage backed securities that are…

Q: Explain Mortgage-Backed Securities and the GNMA Payment Guarantee?

A: Asset backed securities (ABS) are financial securities. As the name suggests these securities are…

Q: Explain The Development of Mortgage-Related Security Pools?

A: Definition : For the granting of a mortgage-backed security, a mortgage pool is a collection of…

Q: Name the principal types of mortgage-related securities. What are the differences between them?

A: Principle type mortgage-related securities are those securities that are based on the mortgage as…

Q: Aside from changes in the general level of interest rates, what is the primary source of risk faced…

A: Mortgage based securities are created by pool of mortgage based loans. Mortgage based securities are…