Types of securities that pollard is buying and selling

Assignment Help Management Theories

Reference no: EM131779398

Question: This quotation is taken from a 1991 issue of bond Week :

First Interstate Bank of Texas will look into buying several different types of collateralized mortgage obligation tranches when it starts up its buy program sometime after the second quarter of 1991, according to Jules Pollard, v.p. Pollard said he will consider replacing maturing adjustable-rate mortgage pass-through with short companion tranches and planned amortization classes because the ARMS have become rich. Pollard did not provide a dollar figure on the planned investments, which will be made to match fund the bank's liabilities. When he does invest he said he prefers government-guaranteed securities or those with implied guarantees.

a. Explain the types of securities that Pollard is buying and selling.

b. Given the preference stated in the last sentence of the quotation, what issuers is he likely to prefer? What issuers would he reject?

Reference no: EM131779398

Questions Cloud

Describe the amount and nature of expense that french oil : With respect to leasing machinery, describe the amount and nature of expense that French Oil & Gas Company and Texas Shale

Firm weighted average cost of capital : If the firm has a tax rate of 25% and a bond yield of 6.2%, what is the firm's weighted average cost of capital?

Conflict resolution and conflict management : Conflict resolution and conflict management are common day-to-day activities in most projects and office environments.

Create a personal timeline of significant life events : Explain how each event and associated change influenced your identity development through your lifespan.

Types of securities that pollard is buying and selling : Given the preference stated in the last sentence of the quotation, what issuers is he likely to prefer? What issuers would he reject?

Discuss product cost on the balance sheets of manufacturers : Factory overhead is reported as a separate product cost on the balance sheets of manufacturers

Problem on freddie mac pass-through security : Suppose that a savings and loan association has decided to invest in mortgage-backed securities and is considering the following two securities.

What is the investment worth two years from today : If the landowner invests the money at a rate of 5.5% compounded annually, what is the investment worth two years from today.

Meaningful use and the hitech act : Find information in relation to interoperability, meaningful use and the HITECH ACT.

User Account

All Pages