Understanding Mortgage Backed Securities, Asset Backed Securities, and Credit Analysis
Mortgage Backed Securities (MBS) and Asset Backed Securities (ABS)
Amortization and Prepayment Calculations
Question 1: Amortization Schedule
Complete the amortization schedule for the first three (3) months only on a 30-year fully amortizing mortgage loan with a mortgage rate of 7.25% where the amount borrowed is $150,000. The monthly mortgage payment is $1,023.26.
Question 2: Single Monthly Mortality (SMM) and Conditional Prepayment Rate (CPR)
Consider the following information:
- Mortgage balance in
Economy vs Economics: Understanding the Basics & Key Differences
Economy and Economics
1. Economy:
- Concrete System: Specific system of production, distribution, and consumption in a defined area (e.g., national or regional economy).
- Social Activity: Focuses on interactions and activities within the system (e.g., buying, selling, trading).
- Dynamic and Evolving: Constantly changes due to individual choices, technological advancements, and policy interventions.
2. Economics:
- Academic Discipline: Field of study analyzing economic phenomena and principles.
- General Concepts:
Understanding Stock Markets and Trading: A Comprehensive Guide
Understanding Stock Markets and Trading
1. Primary vs. Secondary Markets
If Sue buys 300 newly issued shares of High Color Detergent on NASDAQ, the trade occurs in the primary market.
When Wilson buys 500 outstanding shares of GE, the trade occurs in the secondary market.
2. Initial Public Offerings (IPOs)
Hi-Tek Shoes, a private firm going public, will be conducting an initial public offering (IPO).
3. Investment Banking
Firms specializing in arranging financing for companies are called investment banking
Read MoreInternational & Relationship Marketing: A Comprehensive Guide
International Marketing
Marketing, in essence, remains consistent globally. The consumer forms the nucleus of business decisions, with companies striving to fulfill their needs. However, international marketing presents unique considerations:
- National Boundaries: Customs, tariffs, and regulations influence trade.
- Currency Exchange: Conversion costs and fluctuations impact pricing.
- Technological Advancements: Innovation affects product development and marketing strategies.
While domestic and international
Read MoreInternational and Relationship Marketing: Strategies, Segmentation, and Environmental Factors
International Marketing
Marketing, in part, remains the same worldwide. The consumer is at the core of business decisions, and the company is dedicated to satisfying their needs. However, international marketing presents unique aspects:
- National boundaries represent the presence of customs and tariffs.
- Currency conversion for product or service payments incurs charges.
- Technology influences product approval.
Domestic and international marketing strategies both aim to meet consumer needs. However, international
Read MoreThe Ultimate Guide to Human Resources Audit
CONCEPT OF AUDIT:
The audit is a critical, systematic, and impartial assessment conducted by an expert, either internal or external to the organization. It aims to evaluate the current state of a business area or subject, identify observations, and provide recommendations for improvement. The Human Resources Audit, specifically, falls within this scope and often requires a multidisciplinary team of professionals.
HR AUDIT DEFINITION
An HR Audit analyzes a company’s personnel policies, practices, and
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