What you will learn
- Structural features and their impact on valuation and analysis of MBS
- Describe the structural features and cash flow characteristics of pass-through securities
- Recognize the impact of prepayment rates in the analysis and valuation of MBS
- Explain the basic features of agency and non-agency CMOs as well as important types of tranches (sequential pay, Planned AmortizationClass, accrual/z-bond, etc)
- Describe the basic elements of TBA (To Be Announced) trades and dollar rolls
Preview course content here for free! This preview course also offers an opportunity to earn an edX certificate for $49.
Taught by instructors with decades of experience on Wall Street, the Mortgage Backed Securities (MBS) Professional Certificate program is a fast paced, comprehensive yet detailed introduction to the U.S. mortgage-backed securities market.
The program covers the basics of terminology and features of individual mortgage contracts all the way through to the structure and investment characteristics of exotic instruments such as PAC bond tranches and reverse mortgage securitization.
Along the way, the program will address aspects of the MBS market ranging from the creation of the basic building blocks (mortgage origination and types of mortgages), the process of turning them into investment instruments (asset securitization) and how in certain instances the cash distributions are structured to create a variety of securities from a single collateral pool (types of tranches of Collateralized Mortgage Obligations – CMOs).
The majority of the program will focus on the largest segment of the market, agency (FNMA, FHLMC and GNMA) residential mortgage backed securities, both pass-through securities and CMOs. However, the other market sectors (agency multi-family, non-agency CMOs and commercial mortgage-backed securities – CMBS) will be addressed in some detail.
The coverage of each type of security will address: the most frequently encountered instrument in each category as well as common variations, the type of collateral that provide the cash flows for distribution to investors, and the structure of cash disbursements. The primary themes in the discussion of each security is the consequence of all those forgoing elements with respect to the primary types of risk investors face and the way in which those elements impact expected return.
Augmenting the discussion of the securities will be an introduction to the pricing conventions (including PSA and CPR speeds) and analytics (OAS analysis) as well as market-related issues such as TBA trading and dollar rolls.
NOTE: Completing all 2 parts and then taking the Professional Certificate Examination is MANDATORY to achieve both the NYIF Certificate of Mastery and the edX Professional Certificate in Mortgage Backed Securities. A verified learner must pass all courses in the program with a minimum grade of 70% to earn a Professional Certificate for Mortgages Backed Securities.
Courses in this program
NYIF's Mortgage Backed Securities (MBS) Professional Certificate
- Career prospects for people with similar training include: investors, commercial and investment bankers, lawyers, accountants, regulators.
- Employment of financial managers is projected to grow 7 percent from 2014 to 2024, about as fast as the average for all occupations.
- Median salary for Mortgage Backed Securities Analyst is $84,781. (source: Glassdoor)
Meet your instructor
Experts from NYIF committed to teaching online learning
NYIF is great option for those looking to learn more about specific finance related topics that you just won't get in undergrad or grad school. I took the course on Mortgage Backed Securities (MBS) and I can tell you first hand, this is something they just don't teach about in great detail in college. Appreciated the chance to learn from someone with real world experience and along side other colleagues working in the industry. Have referred back to my course materials on numerous occasions since for reference.