A Study of the Mortgage-Backed Securities in the United States

• Main Authors: Yii-Ling Wu, 吳以苓
• Other Authors: Lee, ShyanYuan
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/56267110237744566582

碩士 === 國立臺灣大學 === 財務金融學研究所 === 88 === The asset securitization concept developed in 1970 in the United States is basically to use mortgage loans as collateral to issue bonds in the capital market, so that a more direct channel could be established between demand and supply. The process of securitization involves origination, structuring, credit enhancement, credit rating, sales and trading, and servicing. By way of asset securitization , the originators enjoy higher asset liquidity, lower funding costs, and improved capital ratio; while investors can use mortgage-backed securities to diversify their portfolios, improve liquidity and enhance yields. The evolution of asset-backed securities started with pass-throughs, and moved through mortgage-backed bonds to collateralized mortgage obligations. Assets being securitized also expanded from mortgage loans to credit card loans, car loans, account receivables, lease receivables, etc., providing a wide variety of financial instruments. Prepayment is the unique characteristic of mortgage-backed securities that makes their risk/return profile entirely different from other fixed-income securities. The most essential elements contributing to the successful development of the mortgage-backed securities market in the United States can be summarized as follows： 1.The guarantees of government agencies; 2.The exclusion of the collaterals from the balance sheets of originators; 3.Complete and detailed statistics on mortgage loans; 4.The ability to develop prepayment models; and 5.The ability to develop new financial instruments to attract more investors.