An investor's guide to understanding and using financial instruments. The Handbook of Financial Instruments provides comprehensive coverage of a broad range of financial instruments, including equities, bonds (asset-backed and mortgage-backed securities), derivatives (equity and fixed income), insurance investment products, mutual funds, alternative investments (hedge funds and private equity

Mortgage?backed securities (MBSs) are constructed by aggregating large numbers of similar mortgage loans in mortgage pools. There are two mechanisms for securitizing MBS pools; they can be issued by governmental agencies and quasi?agencies (that is, the government?sponsored enterprises, or GSEs) as agency pools, or structured with separate credit enhancement as "private?label The definitive MBS guide, with fully updated material on the latest mortgage-backed products, methods, models, and portfolio strategies By providing hands-on information vital to market participants, previous editions of The Handbook of Mortgage-Backed Securities were instrumental in fueling the growth of the mortgage-backed securities market. Fabozzi is the author and editor of dozens of widely acclaimed books on fixed income securities and investments, including Fixed Income Mathematics, The Handbook of Financial Instruments, Handbook of Mortgage-Backed Securities, and numerous others. The definitive MBS guide, with fully updated material on the latest mortgage-backed products, methods, models, and portfolio strategies By providing hands-on information vital to market participants, previous editions of The Handbook of Mortgage-Backed Securities were instrumental in fueling the growth of the mortgage-backed securities market. II. Residential Mortgage Loans 257 III. Mortgage Passthrough Securities 260 IV. Collateralized Mortgage Obligations 273 V. Stripped Mortgage-Backed Securities 294 VI. Nonagency Residential Mortgage-Backed Securities 296 VII. Commercial Mortgage-Backed Securities 298. CH