Mortgage-Backed Securities- FRM/CFA 2021 (Complete Guide)

Complete Guide on MBS, ABS, CMO.

In this course, Prof. Partha Deshpande summarizes the entire Mortgage-Backed Securities chapter from the Financial Markets and Products book so that you can learn or review all of the important concepts for your Financial Risk Management part 1 exam. Partha Deshpande has taught personal classes for over 2 years, with a success ratio of 89%.

What you’ll learn

  • Complete Guide to Asset/Mortgage Backed Securities- What are they? How do they function?.
  • Types of MBS, ABS and CMO..
  • What are the Prepayment Factors and Prepayment Modeling Characteristics?.
  • Solve for Conditional Prepayment Rate, Single Monthly Mortatility, Weightage Average Coupon and Weightage Average Maturity..
  • What is the difference between PAC and Support Tranches of CMO?.
  • What is the difference between Interest Only (IO) and Principle Only (PO) Tranches of CMO?.
  • What is Option Adjusted Spread? And what are the different types of spreads..

Course Content

  • Mortgage-Backed Securities –> 3 lectures • 10min.
  • Prepayment Factors and Prepayment Modeling –> 2 lectures • 8min.
  • Conditional Prepayment Rate, Single Monthly Mortatility, WAC and WAM –> 2 lectures • 9min.
  • Option Adjusted Spread and Understanding CMO Tranches –> 2 lectures • 21min.

Mortgage-Backed Securities- FRM/CFA 2021 (Complete Guide)

Requirements

  • None..

In this course, Prof. Partha Deshpande summarizes the entire Mortgage-Backed Securities chapter from the Financial Markets and Products book so that you can learn or review all of the important concepts for your Financial Risk Management part 1 exam. Partha Deshpande has taught personal classes for over 2 years, with a success ratio of 89%.

In this course, you will learn the following-

Complete Guide to Asset/Mortgage-Backed Securities- What are they? How do they function?

What are the types of Mortgage-Backed Securities, Asset-Backed Securities, and Collateralised Mortgage Obligation?

What are the Prepayment Factors and Prepayment Modeling Characteristics?

Solve for Conditional Prepayment Rate, Single Monthly Mortality, Weightage Average Coupon, and Weightage Average Maturity.

What is the difference between PAC and Support Tranches of Collateralised Mortgage Obligation?

What is the difference between Interest Only (IO) and Principle Only (PO) Tranches of Collateralised Mortgage Obligation?

What is Option Adjusted Spread? And what are the different types of spreads?

 

After completion of this course, make sure to head-out and complete other chapters that you face difficulty in, in order to be able to ace your Financial Risk Management charter on the first go!

 

Are you ready to start your prep? Let’s get started. Head out to the first section and start your prep!