Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A mortgage, is sold to the SPV at the discretion of the bank to securitize it into a mortgage backed security, that is, the mortgage is said to have passed to the SPV which is usually a third party. The mortgage bank continues to service the mortgage on behalf of the SPV so that the client contact need not be passed on. In return for his service, he receives a fee from the SPV. The SPV issues MBS which are usually structured in various tranches to investors. These tranches may be AAA rated senior debt that is 95% of pool value, a junior debt which is again divided into one or more tranches rated AA, A and so on which is 5% of pool value and a reserve account usually guaranteed by the originator (mortgage bank) and this is less than 1% of pool value. The MBS is divided into different tranches to increase the credit risk of senior debt so that lower yield can be paid on the MBS.
An investor of an MBS gets the right not only to the cash flows but also to the collateral associated to the cash flows. However, the sale of collateral is only a supplementary measure. Once the servicer or originator receives cash flows (interest and a mortization as per the contract) from the mortgagor, he transfers these cash flows to the trustee who then pays the investors coupon rate and principal.
Q. Explain about Centralised treasury function? Treasury departments are usually a feature of larger companies than Frantic although it is perhaps beneficial to consider the be
What are the Limitations of ratio analysis A ratio on its own is meaningless. Accounting ratios should always be interpreted in relation to other information, for illustration:
BLACKWATER PLC (a) Calculation of NPV EV = (0.3 × 0.50) + (0.5 × 1.40) + (0.2 × 2.0) = 0.15 + 0.70 + 0.40 = 1.25 (i.e.) $ 1.25m To conclude the NPV of the project
Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int
Common-size Analysis • Prepare a Common-size Analysis for the Balance Sheet and Income Statement • This should include about 12 accounts in the Balance Sheet and about 10 Inc
Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''s cost of capi
Q. What do you mean by Credit policy? Credit policy: the credit policy of the concern in its dealing with the debtors and the creditors influencly consider the requirement of t
Question 1 Insurance is protection against possible financial loss. Explain life insurance in detail Question 2 Mutual funds are a composite of stocks, bonds, and securities,
How to Industry analysis and finally stock picking from Buy-side perspective
Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd