structured products and securitization
Educational articles in this subcategory.
Collateralized Mortgage Obligations Tranches
Structured products demand precision in balancing risk mitigation and return enhancement. In mortgage securitization, the tension between cash flow pr...
Pass-Through Prepayment Behavior
Pass-through securities derive value from predictable cash flow streams, but prepayment behavior introduces volatility that distorts projected returns...
Prepayment Models: PSA and CPR
Prepayment modeling is the backbone of structured credit analysis. For mortgage-backed securities (MBS), cash flow uncertainty from borrower behavior ...
Extension Risk in Rising Rate Environments
In rising rate environments, extension risk emerges as a critical vulnerability for structured products and securitizations. As benchmark rates climb,...
Glossary: Securitization Terms
Securitization transforms illiquid assets into tradable bonds, but its complexity creates a workflow tension: balancing transparency with the need for...