tailieunhanh - Slides_Fundamentals of Investments - Chapter 13

Chapter 13 Mortgage-Backed Securities A Brief History of Mortgage-Backed Securities Traditionally, local banks wrote most home mortgages and then held the mortgages in their portfolios of interest-earning assets. Then, when market interest rates climbed to near 20% in the early 1980s, bank customers flocked to withdraw funds from their savings deposits to invest in money market funds. | 3 C h a p t e r Mortgage-Backed Securities Fundamentals of Investments Valuation Management second edition Charles J. Corrado Bradford D. Jordan McGraw Hillz Irwin Slides by Yee-Tien Ted Fu Goal 13-2 Mortgage-Backed Securities Our goal in this chapter is to examine the investment characteristics of mortgage pools. McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights reserved. 13 -3 A Brief History of Mortgage-Backed Securities Traditionally local banks wrote most home mortgages and then held the mortgages in their portfolios of interest-earning assets. Then when market interest rates climbed to near 20 in the early 1980s bank customers flocked to withdraw funds from their savings deposits to invest in money market funds. Today an originator usually sells the mortgage to a mortgage repackager who accumulates them into mortgage pools. McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights .