Overview

This course will introduce you to a variety of the more commonly-encountered types of mortgage-backed securities, pass-through securities, and CMO's, as well as a lot of the concepts used to assess the attractiveness of mortgage-backed securities and a lot of the details to help understand mortgage-backed securities and how they work.

This course contains 21 lectures among 4 sections:

  • Introduction to Mortgages and Mortgage Backed Securities
  • Pass Through Securities
  • Analysis of Pass Through Securities
  • Collateralized Mortgage Obligations

Learning Outcomes

At the end of this course, you will be able to...

  • You'll learn what Mortgage Backed Securities are and how they are structured
  • You'll learn what pass-through securities are, their risks, and prices & yields
  • You'll learn what collateralized mortgage obligations (CMOs) are and how they work


Target Audience

  • Analysts and associates in commercial, corporate and investment banking.

Course curriculum

  • 1

    Welcome to the course!

  • 2

    Slack Channel Discussion, Help + More

    • Slack Channel (Discussion Forum)
    • If (and when) you need help...
    • Joining the Alumni Community
  • 3

    Introduction to Mortgages and Mortgage Backed Securities

  • 4

    Pass Through Securities

    • Introduction to Pass Through Securities FREE PREVIEW
    • Introduction to Pass Through Securities (Slides)
    • US Mortgage Agencies
    • US Mortgage Agencies (Slides)
    • Agency Underwriting Guidelines
    • Agency Underwriting Guidelines (Slides)
    • Structure of Pass Through Securities
    • Structure of Pass Through Securities (Slides)
    • Mortgage Cash Flows Part 1
    • Mortgage Cash Flows Part 1 (Slides)
    • Mortgage Cash Flows Part 2
    • Mortgage Cash Flows Part 2 (Slides)
    • Mortgage Pool Cash Flows
    • Mortgage Pool Cash Flows (Slides)
    • Mortgage Prepayments
    • Mortgage Prepayments (Slides)
  • 5

    Analysis of Pass Through Securities

    • Risks of Pass Through Securities
    • Risks of Pass Through Securities (Slides)
    • Pass Through Securitries Prices and Yields
    • Pass Through Securitries Prices and Yields (Slides)
    • Pass Through Securities Cash Flows and Valuation
    • Pass Through Securities Cash Flows and Valuation (Slides)
    • MBS Prepayments and Negative Convexity
    • MBS Prepayments and Negative Convexity (Slides)
    • Prepayment Benchmarks
    • Prepayment Benchmarks (Slides)
  • 6

    Collateralized Mortgage Obligations

    • Conditional Prepayment Rate and Introduction to CMOs
    • Conditional Prepayment Rate and Introduction to CMOs (Slides)
    • CMOs and Sequential Pay Tranches
    • CMOs and Sequential Pay Tranches (Slides)
    • Z Bond Tranches
    • Z Bond Tranches (Slides)
    • PAC Bond Tranches
    • PAC Bond Tranches (Slides)
    • Other Types of Tranches
    • Other Types of Tranches (Slides)
  • 7

    Quizzes

    • Quiz 1
    • Quiz 2
    • Quiz 3
    • Quiz 4
    • Quiz 5
  • 8

    Final Exam

    • Final Examination
    • Final Exam: Launch Here
  • 9

    Next steps

    • Congrats! Here's what's next...
    • Yippee! You're an alumnus!
    • Alumni Slack Channel