Analysis of Mortgage- Backed Securities: Before and After the Credit Crisis
There has been substantial turmoil and change in the financial markets over the past few years. We saw a housing bubble collapse trigger a subprime crisis that caused banks to fail, leading to a credit crisis and a recession requiring substantial government intervention. Among other things, this has led to renewed interest in analysis of mortgage-backed securities.
Valuation of mortgage-backed securities (MBSs) and collateralized mortgage obligations (CMOs) is the big science of the financial world. There are many moving parts, each one drawing ...