Mortgagable Securities

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This ppt presentation will tell you how the market for mortgagable securities played a role in global crisis.

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  • Mortgagable Securities

    1. 1. MARKET FOR MORTGAGABLE SECURITIES Presented by: Anuj Bhandari Arka Prava Sarkar Arun Kochar Ashish Baid
    2. 2. DEFINITION OF MORTGAGE BACKED SECURITIES <ul><li>Fixed income investment instrument </li></ul><ul><li>Principal and interest </li></ul><ul><li>Several types of mortgage securities issued within the U.S. marketplace - including non-derivative and derivative products: </li></ul><ul><li> Non-Derivative Products </li></ul><ul><ul><li>Mortgage-Backed Bonds (MBB) </li></ul></ul><ul><ul><li>Mortgage-Backed Securities (MBS) </li></ul></ul><ul><ul><li>(also referred to as Pass-Through Securities) </li></ul></ul><ul><ul><li>Derivative Products </li></ul></ul><ul><ul><li>Collateralized Market Obligation (CMO), </li></ul></ul><ul><ul><li>REMIC’s , etc </li></ul></ul>
    3. 3. www.themegallery.com
    4. 4. SEGMENTATION OF MORTGAGE MARKET LENDERS MORTGAGE BROKER <ul><li>S&L </li></ul><ul><li>COMMERCIAL BANK </li></ul><ul><li>INSURANCE CO. </li></ul><ul><li>CREDIT UNION </li></ul><ul><li>FINANCIAL CO. </li></ul>PRIMARY MARKET BORROWER <ul><li>FEATURES: </li></ul><ul><li>Lenders can acquire funds to issue new loans </li></ul><ul><li>This loan can be packed with other loans & handed over to the Government agencies </li></ul>
    5. 5. SECONDARY MARKET INVESTORS SECONDARY MARKET INSTITUTIONS HOME OWNER <ul><li>INSURANCE COMPANY </li></ul><ul><li>HEDGE FUND </li></ul><ul><li>PENSION FUND </li></ul>PAYMENT MONTHLY MORTGAGE PAYMENT
    6. 6. <ul><li>THANK YOU </li></ul>

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