Mortgage-Backed Securities (MBS) Fundamentals

Understanding the complex world of structured finance is essential for any modern investment or banking career. This course demystifies mortgage-backed securities (MBS), breaking down how individual home loans are pooled, structured, and traded in global markets. You will transition from a beginner to a confident analyst capable of evaluating MBS structures, modeling prepayment risks, and understanding the regulatory landscape that governs these powerful financial instruments. What you'll learn: - Understand the foundational mechanics of securitization and how mortgage pools are created - Analyze different MBS structures, including pass-through securities and Collateralized Mortgage Obligations (CMOs) - Evaluate prepayment risk and extension risk using modern modeling concepts in volatile interest rate environments - Calculate key valuation metrics such as option-adjusted spread (OAS) and weighted average maturity - Assess the impact of current regulatory frameworks and market standards on MBS trading and risk management The course begins with core definitions and the history of securitization before moving step-by-step through cash flow structuring, risk analysis, and modern valuation techniques. You will reinforce your learning through written case studies and practical financial scenarios designed for self-paced reading. This course is designed for aspiring financial analysts, investment professionals, and business students looking for a comprehensive, beginner-friendly introduction to debt markets with no prior MBS experience required. Start reading today to build a strong foundation in structured finance.