Synopses & Reviews

Publisher Comments:

Mortgage-backed securities (MBSs) and asset-backed securities (ABSs) are the largest sector of today’s bond market, with billions of dollars of securities traded every day. They constitute a core holding of almost all U.S. institutional fixed income investors. The authoritative Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities assembles recent research conducted by analysts at Salomon Smith Barneyas well as insightful analysis of this researchto provide a comprehensive, sophisticated, and unambiguous examination of today’s MBS and ABS markets.

Organized sequentially, with self-contained chapters that can be read on their own to eliminate the confusion so often found in other books of its type, this invaluable guide is an ideal training tool and resource for investment professionals, institutional investors, pension funds, hedge funds, and all others looking for clear, concise, and complete treatment of this multifaceted subject. Look to this guide for information on topics including:

• A general framework for modeling of prepayment rates on residential mortgage loanscritical in estimating security cashflows and investment characteristics
• How the Internet is changing the mortgage origination process, and the resulting implications for prepayment patterns
• Option-adjusted spreadsthe standard valuation methodology that combines prepayment and term structure models
• Collateralized mortgage obligations (CMOs), one of the largest sectors of today’s market
• Nonmortgage-related ABSs, including up-to-date innovations in credit card ABSs
• MBS and collateralized mortgage-backed securities (CMBS) markets in the United Kingdom, and the rapidly growing MBS market in Australia
• Appendices that include a glossary of common terms, a guide to investor resources including Web sites, information on risk-based capital standards, and basic mortgage mathematics

The MBS and ABS market has grown to become a key area for institutional investors, and up-to-date knowledge is crucial for investment success. Let the Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities provide you with the fundamentals, characteristics, and insights you need to fully understandand capitalize on opportunities intoday’s transformed MBS and ABS marketplace.

Assembles recent research conducted by analysts at Salomon Smith Barney examining the contemporary mortgage-based securities (MBS) and asset-backed securities (ABS) markets. The volume is organized sequentially, with self-contained chapters suitable for training and educating. It provides a general framework for modeling of prepayment rates on residential mortgage loans; how the Internet is changing the mortgage origination process; collateralized mortgage obligations (CMOs); option-adjusted spreads and durations; nonmortgage-related ABSs; and MBS and collateralized mortgage-backed securities (CMBS) markets in the UK and the MBS market in Australia. Appendices include a glossary of terms, an investors’ resource guide, information on risk-based capital standards, and basic mortgage mathematics.

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