Instructor:
William Corrigan
Hours: 9:00 am - 4:30 pm; Registration/Breakfast begins at 8:30
am
This
one-day seminar provides a high level introduction to Mortgage
Backed Securities. The primary focus of the program will be to give
financial services employees an understanding of the origination,
securitization, second market trading and post trade processing
characteristics of agency MBS. Coverage will entail a review of
pertinent terms and definitions, descriptions of the securities
features and characteristics, as well as some discussion of industry
conventions regarding trading and post trade processing.
This
class is geared for members of the financial services industry that
are new to the MBS marketplace and needs and understanding of what
mortgage-backed securities are and how the marketplace operates.
Overview of the Mortgage Backed Securities Market
Mortgage
Loan Types
-
Residential MBS
-
Commercial MBS
-
Collateralized Mortgage Obligations (CMOs)
-
Stripped MBS
-
Interest Only
-
Principal Only
-
REMICs
Agency
Pass Through Securities:
-
Ginnie Mae
-
Fannie Mae
-
Freddie Mac
Government Sponsored Enterprise (GSE) Guarantees
-
Ginnie Mae, Fannie Mae, Freddie Mac
-
Stripped MBS
-
Origination
-
Trading
-
Portfolio Operations
-
Clearing Agents
Securitization Process Model
-
Origination
-
Securitization
-
Secondary Market
-
Investors
-
Servicers
-
Mortgage Rates versus MBS Coupon
-
Cash Flows
Investment Characteristics of MBS
-
Credit versus Government Securities
-
Yield Premiums
-
Performance Risks
-
Contraction versus Extension
Mortgage
Pool Characteristics:
The MBS
Industry
-
SIFMA
-
Originators
-
GSEs
-
Broker/Dealers
-
Inter-Dealer Brokers
-
Sellside versus Buyside
-
Discussion of the Participants in the MBS
Secondary Market
The MBS
Marketplace
-
OTC
-
TBA
-
Settlement Periods
-
Transaction Size
-
Structured Products
-
Direct
-
Give-ups
-
Variance
-
Settlement Periods
Post
Trade Processing
-
Central Counterparty Absence
-
Matching
-
Checkout
-
Netting
-
Risk Management
-
Pool Notification
MBS
Clearing
-
Clearing Programs
-
Trade Comparison and Matching
-
Risk Management Philosophy
-
Netting
-
Electronic Pool Notification
Lifecycle of a TBA Trade
-
Trade Execution
-
Trade Checkout
-
Trade Input
-
Trade Output
-
Risk Management Theory
-
Risk Management Process
-
Give-Up Process
-
Netting Process
-
Trading and Allocation System Updates
-
48-hour Day Pool Notification
-
Trading and Clearance System Updates
-
Netting Cash Settlement
-
Notification of Settlement Processing
-
Trade Closure
-
Cash Adjustments
Industry Service Providers
-
Software Solutions
-
Correspondent Clearing
-
Prime Brokerage
-
Allocation System Vendors
-
Trading System Vendors
-
Clearing Houses
-
Rules and Procedures
-
SIFMA
-
DTCC
The
Future of MBS
-
Creation of Central Counterparty
-
Specified Pool Trade Processing
-
Pool Substitution Processing
