Mar 27, 2007
| Last Updated
This brief looks at the building blocks of the mortgage securitization business. Special attention is given to the U.S. subprime market and its channels of credit risk distribution. The latter include the credit protection market on home equity securities, as well as the index tranches of these credit protection contracts. This introduction includes a short overview of the newly launched Tranche ABX Index (TABX).
Mortgage-Backed Securities (MBS)
Financial institutions that originate mortgages turn their loans into marketable securities by securitization in order to obtain more funds to[...]
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