Mortgage-Backed Security (MBS) Instrument and Market Features
Free CFA Level I lesson in Fixed Income. 10 min read, ~1,482 words.
© CFA Institute. Reproduced under EPP listing. - 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...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- instrument features
- cash flows and types
- issuance and trading
- markets for corporate issuers
- markets for government issuers
- bond valuation prices and yields
- yield measures fixed-rate bonds
- yield measures floating-rate instruments
- term structure spot par forward
- interest rate risk and return
- yield-based duration measures
- yield-based convexity portfolio properties
- curve-based and empirical risk measures
- credit risk
- credit analysis government issuers
- credit analysis corporate issuers
- securitization
- ABS instrument and market features
- MBS instrument and market features
Browse all free CFA Level I lessons or jump into free CFA Level I practice questions.