Basics of Mortgage-Backed Securities (Frank J. Fabozzi Series) (Hardcover)

~ (Author) "A mortgage is a loan secured by the pledge of a specific piece of real estate property..." (more)
Key Phrases: benchmark yield spread, implied financing rate, housing turnover rate, Federal Reserve, Freddie Mac, Fannie Mae (more...)

Editorial Reviews

Product Description

The purpose of Basics of Mortgage-Backed Securities is to provide readers with a fundamental understanding of mortgage securities as an integral part of investment in fixed-income securities. The second edition of this MBS classic provides the latest information on the U.S. residential mortgage market, adjustable-rate mortgages and mortgage pass-throughs, relative value analyses and performance characteristics.

Dr. James Hu discusses the major changes within the mortgage market that may affect the fundamentals of mortgage securities. Some of these are: the recovery of the REMIC market after its collapse; the flourish of private-label securities; the growth of equity loan-backed securities and its establishment as a member of the fixed-income securities family. Also included are additional historical data for all exhibits. Mortgage pre-payment, dollar rolls, and private-label mortgage-backed securities are also addressed.

From the Back Cover

The purpose of Basics of Mortgage-Backed Securities is to provide readers with a fundamental understanding of mortgage securities as an integral part of investment in fixed-income securities. The second edition of this MBS classic provides the latest information on the U.S. residential mortgage market, adjustable-rate mortgages and mortgage pass-throughs, relative value analyses and performance characteristics.

Dr. James Hu discusses the major changes within the mortgage market that may affect the fundamentals of mortgage securities. Some of these are: the recovery of the REMIC market after its collapse; the flourish of private-label securities; the growth of equity loan-backed securities and its establishment as a member of the fixed-income securities family. Also included are additional historical data for all exhibits. Mortgage pre-payment, dollar rolls, and private-label mortgage-backed securities are also addressed.

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Product Details

• Hardcover: 184 pages
• Publisher: Wiley; 2 edition (January 2001)
• Language: English
• ISBN-10: 1883249872
• ISBN-13: 978-1883249878
• Product Dimensions: 9.4 x 5.9 x 0.6 inches
• Shipping Weight: 15 ounces (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (4 customer reviews)
• Amazon.com Sales Rank: #816,340 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

8 of 9 people found the following review helpful:

5.0 out of 5 stars Great Intro. - gets to the point., August 2, 2000

By	"rickzuma" (New York City) - See all my reviews

This review is from: Basics of Mortgage-Backed Securities (Paperback)

This is the best introduction, giving a brief yet broad coverage to an important market. In just 144 pages Hu covers the the important points. The Mortgage Backed Security market, at over 2 trillion dollars, will soon exceed the US treasury market as the largest and most liquid bond market. Nevertheless, this market is still viewed as highly specialized due to the complications in security structure and prepayment optionality. Hu explains these complications clearly giving the reader confidence to enter this market.

4.0 out of 5 stars Great intro...but don't read it by itself if you want to really understand this subject, December 12, 2006

By	T. Dixon "Not bad for a city college boy" (Rockin' in the Free Market) - See all my reviews (REAL NAME)

This book was a great introduction to the basics of mortgage-backed securities, exactly as the title professes. It is loaded with graphs and tables to help readers understand the quantitative sections.

If you really want to understand this subject though, read Fabozzi and Modigliani's "Mortgage and Mortgage-Backed Securities Markets" as well as (or even in lieu of) this book. It dates back to the 80s, but together with this book you will have a firm grasp of the fundamentals, and you can easily understand recent developments.

3.0 out of 5 stars Good Overview of Mortgage Backed Securities, November 23, 2005

By	Mark Yelavich (Roseville, California) - See all my reviews (REAL NAME)

Anyone interested in learning the basics of MBS will benefit from this book.

Author Dr. Joseph Hu does a fine job of examining the following topics in 12 chapters: residential mortgages, US residential mortgage market, pass-throughs, prepayment, basic mortgage math, ARMs, multiclass pass-throughs, private labels, HELOC-backed securities, dollar rolls, relative value analysis and historical performance of MBS.

Some data is dated (1990's). Then again, the book has a 2001 copyright. Nevertheless, the fundamental concepts of MBS are comfortably examined in 168 pages.

Hu did a fine job elaborating on mortgage prepayment and the primary reasons for it (refinancing and housing turnover). I also benefited from Chapter 7's focus on multi-class pass throughs, where CMOs, PACs, Floaters, IOs and POs are briefly discussed.

There are more illustrative graphs than confusing formulas in this book. All in all, I found "Basics of Mortgage-Backed Securities" to be quite readable. Overall, I give this book a 3 1/2 star rating. Readers interested in getting much more detail about MBS should consider "Salomon Smith Barneys Guide to Mortgage Backed and Asset Backed Securities" (Hayre).