The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset-backed Securities: 136 (Wiley Finance) - Hardcover

Stone, Charles Austin; Zissu, Anne

Hardcover

ISBN 10: 1118006747 ISBN 13: 9781118006740

Publisher: Bloomberg Press, 2012

Synopsis

A comprehensive guide to the continuously evolving world of securitization

The Second Edition of The Securitization Markets Handbook is a valuable resource for both experienced money managers trying to put a securitization strategy into place as well as newcomers looking to acquire a broad and strong foundation in this discipline. This edition takes a close look at the pre- and post-crash mortgage market and the mortgage-backed securities based on those mortgages, as well as other asset-backed securities including commercial paper or credit cards.

The crash of the subprime market and the failure of the asset-backed markets offer an opportunity to learn about banking finance, specifically off-balance sheet finance, and the many costly mistakes that resulted in one of the most severe downturns in financial markets. With this book, you'll discover why certain mortgage and asset-backed securities imploded and others didn't. This new edition examines why the market failed and how the next crisis can be averted or made less severe. It also explains why securitization remains a primary source of capital for the mortgage market, credit card market, home equity market, auto loan market, and segments of the commercial paper market.

• Offers an informed overview of how the securitization market works, how to make money in it, and what's next for asset- and mortgage-backed securities after the crisis
• Contains new chapters on CDOs and SIVs, along with a history of the growth and crash of the subprime market, asset-backed securities, and home equity lines of credit
• Written by securitization experts Charles Stone and Anne Zissu

Updated to reflect the current market environment, the Second Edition of The Securitization Markets Handbook offers clear, comprehensive guidance to these complex markets.

About this title

About the Author

CHARLES AUSTIN STONE, PHD, is a Professor of Finance and the Deputy Chairman of the MS in Business Economics program at Brooklyn College, CUNY. He is a leading expert in asset-backed securities, has edited several books on the subject, and coauthored, with Anne Zissu, the first edition of this book. Stone’s research has appeared in leading academic journals, including the Journal of Real Estate Finance and Economics, FNMA’s Journal of Housing Research, the Journal of Deriva-tives, the Journal of Applied Corporate Finance, the Journal of Risk Finance, the Journal of Alternative Investments, and Financial Markets, Institutions, and Instruments. He has been invited to lecture on securitization at various major financial and academic institutions.

ANNE ZISSU, PHD, is the Chairperson of the Department of Business at Citytech, CUNY, and a Research Fellow at NYU Poly in the Department of Financial and Risk Engineering. She is a leading expert in asset-backed securities and senior life settlements, and has edited several books on the subject. Her research has appeared in leading academic journals, including the Journal of Real Estate Finance and Economics, FNMA’s Journal of Housing Research, the Journal of Derivatives, and many others. Professor Zissu has been invited to lecture on securitization at various major financial and academic institutions. Professor Zissu has acted as an expert witness on a number of cases related to securitization and senior life settlements.

From the Back Cover

Since the first edition of The Securitization Markets Handbook was published in 2005, much has changed in the world of finance―mainly in response to the devastating financial crisis that began in 2007. Nobody understands how this situation has affected the securitization markets better than authors Charles Austin Stone and Anne Zissu. With over twenty years of mortgage- and asset-backed securities experience, they are well versed in various aspects of this field. And now, they’ve returned to share their extensive insights with you.

The Second Edition of The Securitization Markets Handbook is necessary not because the market collapsed, but because it was important enough to save and re-regulate. The fact is that a well-functioning market for securitized financial assets is necessary if capital is to flow in adequate amounts to support future growth. And financial professionals who can navigate and operate the securitization process in adherence to new regulations will gain at the expense of those who cannot.

While other books exist on securitization, this one’s approach is unique, offering in-depth analysis of both the supply and demand sides of markets for mortgage- and asset-backed securities. It also contains market data, case studies, and original detailed exhibits that reveal how and why specific companies have securitized their assets, the factors that affect the values of the resulting mortgage- and asset-backed securities, and the securitization structures that were employed. And while this guide has been written to reflect current market conditions―with many updated cases and data―it also remains true to the original edition since some concepts covered do not depend on new data.

Divided into four comprehensive parts, The Securitization Markets Handbook, Second Edition includes:

• Part One, Key Structures and Cash Flow Dynamics, presents the tools and examples that will show you how to value mortgage- and asset-backed securities across various payment and interest-rate scenarios
• Part Two, Corporate Debt and the Securitization Market, examines how and why Ford Motor Company―one of the most active issuers of ABSs―uses securitization and discusses the supply and demand of asset-backed commercial paper (ABCP)
• Part Three, Securitization of Revolving Credit, highlights the structures used to securitize revolving credits, through examples including MBNA
• Part Four, Searching for Value in the Mortgage- and Asset-Backed Markets, addresses the distribution of MBSs and ABSs across various segments of the capital and money markets, examines credit risk and credit enhancement, and analyzes different risks that are specific to a pool of securitized option adjustable-rate mortgages (ARMs)

Securitization is a broad, multifaceted subject, but with this book as your guide, you’ll gain clear insights into this valuable financial innovation and discover the many ways of tapping its value.

From the Inside Flap

Since the first edition of The Securitization Markets Handbook was published in 2005, much has changed in the world of finance mainly in response to the devastating financial crisis that began in 2007. Nobody understands how this situation has affected the securitization markets better than authors Charles Austin Stone and Anne Zissu. With over twenty years of mortgage- and asset-backed securities experience, they are well versed in various aspects of this field. And now, they've returned to share their extensive insights with you.

The Second Edition of The Securitization Markets Handbook is necessary not because the market collapsed, but because it was important enough to save and re-regulate. The fact is that a well-functioning market for securitized financial assets is necessary if capital is to flow in adequate amounts to support future growth. And financial professionals who can navigate and operate the securitization process in adherence to new regulations will gain at the expense of those who cannot.

While other books exist on securitization, this one's approach is unique, offering in-depth analysis of both the supply and demand sides of markets for mortgage- and asset-backed securities. It also contains market data, case studies, and original detailed exhibits that reveal how and why specific companies have securitized their assets, the factors that affect the values of the resulting mortgage- and asset-backed securities, and the securitization structures that were employed. And while this guide has been written to reflect current market conditions with many updated cases and data it also remains true to the original edition since some concepts covered do not depend on new data.

Divided into four comprehensive parts, The Securitization Markets Handbook, Second Edition includes:

• Part One, Key Structures and Cash Flow Dynamics, presents the tools and examples that will show you how to value mortgage- and asset-backed securities across various payment and interest-rate scenarios
• Part Two, Corporate Debt and the Securitization Market, examines how and why Ford Motor Company one of the most active issuers of ABSs uses securitization and discusses the supply and demand of asset-backed commercial paper (ABCP)
• Part Three, Securitization of Revolving Credit, highlights the structures used to securitize revolving credits, through examples including MBNA
• Part Four, Searching for Value in the Mortgage- and Asset-Backed Markets, addresses the distribution of MBSs and ABSs across various segments of the capital and money markets, examines credit risk and credit enhancement, and analyzes different risks that are specific to a pool of securitized option adjustable-rate mortgages (ARMs)

Securitization is a broad, multifaceted subject, but with this book as your guide, you'll gain clear insights into this valuable financial innovation and discover the many ways of tapping its value.

Edition details

• Publisher: Bloomberg Press
• Publication date: 2012
• Language: English
• ISBN 10: 1118006747
• ISBN 13: 9781118006740
• Binding: Hardcover
• Edition number: 2
• Number of pages: 464