Abstract
The first mortgage backed security (MBS) was issued in 1968. Thereafter, the MBS market grew rapidly with outstanding issuance's exceeding $9 trillion by 2010. The growth in the MBS market was accompanied by numerous innovations such as the collateralized mortgage obligations (CMOs) and the emergence of private label alternatives to MBS issued by government sponsored entities. We trace the evolution of the MBS market and we review debates surrounding such questions as whether the MBS market has reduced the cost of housing finance, whether the MBS market is a market for lemons, and what role, if any, MBS played in the run-up and subsequent decline of home prices during the decade of the 2000s. We also detail the evolution of models for MBS valuation as developed by academics and practitioners.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
