FinancialInnovationSecuritization.pptVIP

Financial InnovationSecuritization;Securitization;Earliest examples:The market for home mortgages;Mortgage Backed Securities;An example: GNMA pass-throughs;Structure of a GNMA Pass-through;Credit Enhancements;Credit Enhancements;Collateralized Mortgage Obligations;CMO Varieties;Mortgage Strips;Asset Backed Securities;ABS structure resembling notes;Securitization of Risks:Using Bonds to Buy Insurance;Catastrophe Bonds;Weather Bonds;Alternatives to Securitization of Insurance Risks;Securitizing future cash flow;Rock-n-Roll bonds;Rock-n-Roll bonds ;Problems/Questions;Valuation of Rock-n-Roll B