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Mortgage and Real Estate Finance
Risk Waters, Nov 2008, Pages: 350
US Mortgages, the largest fixed income market in the world, have recently turned into the latest distressed sector, in the midst of declining house prices, deteriorating fundamentals, and limited liquidity. Although the difficult environment is likely to continue, everyone who has been in the market through its gyrations knows that times of trouble can often spell opportunity for the smart investor. Understanding the nature of this complex structured market, and appreciating its subtleties, is a prerequisite for taking advantage of the current dislocation, while avoiding its pitfalls.
Mortgage and Real Estate Finance, edited by Stefania Perrucci, gives an in-depth overview of both the primary and secondary mortgage market. It provides a much-needed analysis of the latest innovations in the market, and serves as a crucial guide to taking advantage of the current environment.
Written from a practitioner’s perspective, but with important academic contributions, this book covers:
- History of the Market from the Great Depression till today - Loan Origination and Underwriting - Structures used in Securitisation and Arbitrage - Agency Mortgage Market and CMOs - Alt-A and Subprime Market - Non-traditional Mortgage Products - Real Estate Indexes and Trading - Modelling of Prepayments and Credit - New Resources for Mortgage Analytics - Risk Management of Mortgage Securities - Investing and Opportunities in Mortgages - Rating Agencies’ Perspective - Servicing in a Distressed Environment - Regulatory and Policy Issues
The focus of the book is to develop understanding and insight on the relevant factors that will influence how the market will evolve in the foreseeable future, and how to use this knowledge to take advantage of the current dislocation.
Mortgage and Real Estate Finance is recommended reading for portfolio managers, analysts, risk managers, researchers and academics. It will also be beneficial to anyone interested in understanding the interaction of the many players and moving parts of the mortgage structured market.
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