Split (1)

train · 173k rows

title stringlengths 1 105	content stringlengths 5 58.1k
History of the web browser	following release version .april bernd richter ceased development stating let microsoft activex development kit rest.microsoft thus far marketed browser finally entered fray internet explorer product version .released august purchased spyglass inc. began known browser wars microsoft netscape competed web browser market.early web users free choose among handful web browsers available would choose application—web standards would ensure experience remained largely same.browser wars put web hands millions ordinary pc users showed commercialization web could stymie standards efforts.microsoft netscape liberally incorporated proprietary extensions html products tried gain edge product differentiation leading web late microsoft netscape browsers viable contenders.
History of the web browser	victory standardized web cascading style sheets proposed håkon wium lie accepted netscapes javascript style sheets jsss wc.late microsoft vs netscape netscapes share browser market reached internet explorer edging microsoft began integrating browser operating system bundling deals oems.within years release ie browser market market.although microsoft since faced antitrust litigation charges browser wars effectively ended clear netscapes declining market share trend irreversible.prior release mac os x internet explorer mac netscape also primary browsers use macintosh platform.unable continue commercially funding products development netscape responded open sourcing product creating mozilla.
History of the web browser	helped browser maintain technical edge internet explorer slow netscapes declining market share.netscape purchased america online late .first mozilla project struggled attract developers evolved relatively stable powerful internet suite.mozilla .released mark milestone.
History of the web browser	also spinoff project would eventually become popular firefox released.firefox always downloadable free start predecessor mozilla browser.firefoxs business model unlike business model netscape primarily consists deals search engines google direct users towards – see web browserbusiness models.in microsoft announced internet explorer would longer made available separate product would part evolution windows platform releases macintosh would made.aol announced would retire support development netscape web browser february .in second half internet explorer reached peak market share .since market share slowly steadily declining around .july .early microsoft reversed decision release internet explorer part windows announcing standalone version internet explorer development.
History of the web browser	internet explorer released windows xp windows server windows vista october .internet explorer released march windows xp windows server windows vista windows server windows .internet explorer later released version included windows microsoft edge became default browser there.apples safari default browser mac os x version .onwards grown dominate browsing mac os x. browsers firefox camino google chrome omniweb alternative browsers mac systems.omniweb google chrome like safari use webkit rendering engine forked khtml packaged apple framework use thirdparty applications.
History of the web browser	august apple also ported safari use windows xp vista operating systems.opera first released .popular choice handheld devices particularly mobile phones remains niche player pc web browser market.also available nintendos ds ds lite wii consoles.opera mini browser uses presto layout engine like versions opera runs phones supporting java midlets.the lynx browser remains popular unix shell users vision impaired users due entirely textbased nature.also several textmode browsers advanced features wm links operate text graphical mode links forks elinks.
History of the web browser	relationships browsers number web browsers derived branched source code earlier versions products.web browsers year table personal computer web browsers year release major version.increased growth internet means current browsers small market shares total users entire market early on.example market share would roughly million users start market share would equate million users.historical web browsers table focuses operating system os browsers .
Outlook.com	year listed version usually year first official release end year end development project change relevant termination.releases os browser early – time frame current focus.many early browsers made run later os later browsers early os cases however situations avoided table.terms defined below.see also history internettimeline web browserslist web browsersusage share web browsers references external links evolt.org – browser archivegeneral basic information framework.systems listed light purple background longer active development.asp.net c coldfusion markup language cfml elixir haskell java javascript perl php python ruby scala others comparison features c coldfusion markup language cfml java javascript perl php python ruby others see also comparison javascript frameworkscomparison shopping cart softwarecontent management systemjava view technologies frameworkslist content management systemslist rich web application frameworkslist web service frameworksmobile development framework referencesfounded sabeer bhatia jack smith hotmail acquired microsoft estimated million relaunched msn hotmail later rebranded windows live hotmail part windows live suite products.microsoft phased hotmail october relaunching service outlook.com .history launch hotmail hotmail service founded sabeer bhatia jack smith one first webmail services internet along fours rocketmail later yahoo mail.commercially launched july symbolizing freedom ispbased email ability access users inbox anywhere world.name hotmail chosen many possibilities ending mail included letters html markup language used create web pages emphasize original type casing hotmail.
Outlook.com	limit free storage mb.hotmail initially backed venture capital firm draper fisher jurvetson.december reported .million subscribers.hotmail initially ran solaris mail services apache freebsd web services partly converted microsoft products using windows services unix migration path.
Outlook.com	msn hotmail hotmail sold microsoft december reported million joined msn group services.hotmail quickly gained popularity localized different markets around globe became worlds largest webmail service million active members reported february .hotmail originally ran mixture freebsd solaris operating systems.project started move hotmail windows .june microsoft claimed completed days later retracted statement admitted dns functions hotmail system still reliant freebsd.hotmail still ran infrastructure unix servers frontend converted windows .
Outlook.com	later development saw service tied microsofts web authentication scheme microsoft passport microsoft account integration microsofts instant messaging social networking programs msn messenger msn spaces later windows live messenger windows live spaces respectively.security issues hackers revealed security flaw hotmail permitted anybody log hotmail account using password eh.time called widespread security incident history web.hotmail service compromised computer hackers discovered anyone could log hotmail account pull messages hotmail account crafting url second accounts username valid message number.simple attack time patch made dozens newspapers hundreds web sites published exact descriptions allowing tens thousands hackers run rampant across hotmail.
Outlook.com	exploitable vulnerability exposed millions accounts tampering august .competition google announced mail service gmail.featuring greater storage space speed interface flexibility new competitor spurred wave innovation webmail.main industry heavyweights – hotmail yahoo mail – introduced upgraded versions email services greater speed security advanced features.windows live hotmail microsofts new email system announced november codename kahuna beta version released thousand testers.
Outlook.com	webmail enthusiasts also wanting try beta version could request invitation granting access.new service built scratch emphasized three main concepts faster simpler safer.new versions beta service rolled development period end number beta testers reached millions.the hotmail brand planned phasedout microsoft announced new mail system would called windows live mail developers soon backtracked betatesters confused name change preferred already wellknown hotmail name decided windows live hotmail.period beta testing officially released new existing users netherlands november pilot market.development beta finished april windows live hotmail released new registrations may million msn hotmail accounts worldwide gained access new system.
Outlook.com	old msn hotmail interface accessible users registered windows live hotmail release date chosen update new service.rollout existing users completed october .windows live hotmail awarded pc magazines editors choice award february march february .in announced service would updated focus improving speed increasing storage space better user experience usability features signin email access speeds would percent faster.classic full versions windows live hotmail combined new release.result user feedback hotmail updated scrolling works users reading pane turned off.also expected hotmail team would moving advertisement top page side adding themes increasing number messages page adding ability send instant messages users inbox future releases.support firefox upgraded windows live hotmail took months complete.
Outlook.com	support google chrome still incomplete prompting chrome developers temporarily ship browser employed user agent spoofing making requests windows live site.as part update microsoft also added integrated capability instant messaging contacts windows live messenger service.feature realization project began windows live web messenger replacement outdated msn web messenger service first introduced august .noted original windows live web messenger featured tabbed conversations conversation workspace however since integration hotmail removed.microsofts search engine bing integrated hotmail introduction quick add feature allowing users add search results bing emails.include images maps business listings.on may microsoft unveiled wave update hotmail offered features click filters active views inbox sweeping gb space photos microsoft office documents attachments.also included integration windows live skydrive windows live office free version microsofts office web apps suite.
Outlook.com	new version began gradual release hotmail users june completely rolled august .exchange activesync support enabled hotmail users august allowing users sync mail contacts calendar tasks mobile devices supports protocol.addition fullsession ssl released november .throughout microsoft added several new features hotmail aliases speed improvements.october microsoft unveiled reinvented hotmail added many new features instant actions scheduled sweep categories update began fully rolling november .update also made ssl enabled default accounts.
Outlook.com	transition outlook.com outlook.com first introduced july beta version made available general public.existing hotmail customers could freely upgrade preview version outlook.com downgrade back.outlook.com graduated preview stage february .according microsoft upgrade deployed april users kept existing hotmail accounts received option outlook.com email address.may outlook.com million active users.may outlook.com continued million active users.
Outlook.com	transition new infrastructure may microsoft announced would move service described office based infrastructure.followed june introduction optin preview new features including new calendar layout options filtering service called clutter new theme designs.microsoft also introduced ability thirdparty providers paypal evernote include addins service.additionally contact suggestions updates emails flight reservations due introduced office subscribers accounts outlook.com users january march respectively.upgrade users longer able use windows live mail client synchronize email contacts calendar event using official settings encouraged view outlook.com web browser mail app microsoft outlook client.
Outlook.com	however windows live mail could configured use imap protocol less effective pop fetch mail only.microsoft concluded preview stage february began roll new version users accounts beginning north america.redesign august microsoft launched new optin beta toggle allowing users test upcoming changes outlook.com mail including faster inbox responsive design ability search emojis.also introduction photos hub fifth component outlook.com.on october microsoft announced would phase outlook.com premium subscription service offered features expanded storage removal ads user interface.benefits subsequently made available office subscribers microsoft longer accept new subscriptions outlook.com premium.
Outlook.com	existing outlook.com premium subscribers may continue renew existing subscription.the old interface dated phased .features similar major webmail services outlook.com uses ajax programming techniques supports later versions internet explorer firefox safari google chrome.features include keyboard controls giving ability navigate around page without using mouse ability search users messages including structured query syntax fromebay message filters folderbased organization messages autocompletion contact addresses composing contact grouping importing exporting contacts csv files rich text formatting rich text signatures spam filtering virus scanning support multiple addresses different language versions.one example feature longer present ability create custom domain names.security privacy outlook.com promised respect users privacy specifically targeting gmails privacy practices.outlook.com scan emails attachments advertising information personal conversations adfree entirely.in march former microsoft employee alex kibkalo arrested involvement leaking microsofts trade secrets microsoft came criticism accessed email inbox french accomplice.
Outlook.com	critics claim actions violate privacy laws well microsofts promises regards users personal information others pointed access permitted microsofts privacy policies order protect rights property microsoft necessary order prevent crime intended inflicted billions dollars damage action microsofts part unprecedented years.response criticism microsoft announced would longer access private account information cases would instead hand investigation law enforcement agencies.outlook.com uses dmarc specifications provide better security message transmission extended validation certificate secure users connection outlook.com.april microsoft added two step verification microsoft accounts thereby extension outlook.com.outlook also allows singleuse code used instead users password signing microsoft account.code used one requested whenever needed.user signing public computer—such library school—using singleuse code helps keep account information secure.
Outlook.com	singleuse code sent user requested login.office web integration outlook.com integrates office web allow viewing editing microsoft word excel powerpoint documents attached email messages.users directly open attached office documents within web browser save onedrive.users also perform edits received office documents directly reply sender edited version document.addition users may also send gb office documents mb using outlook.com uploading documents onto onedrive share documents users viewing collaboration.
Outlook.com	users also save emails onenote.skype integration preview version skype outlook.com started rolling uk april .feature allows users make skype video call within outlook.com without using skype desktop client.aliases users create additional unique email addresses called aliases microsoft account.april users sign alias create aliases per year total addresses.
Outlook.com	given account aliases use inbox contact list account settings—including password—as primary address.alias set users choose email sent address go inbox different folder.emails sent alias reveal recipients come account addresses.keyboard shortcuts freeware version hotmail.com provides list almost keyboard shortcuts web users visual impairment blindness disabilities.components mail mail webmail component outlook.com.
Outlook.com	default view three column view folders groups left list email messages middle selected message right.mails active view allows users interact directly contents functionality within email message.example photo attachments previewed directly using active view.addition mail provides partner platform allows contents functionality various websites services youtube flickr linkedin united states postal service viewed directly within email message.example users may view youtube video within mail user receives email contains link video.active view features include tracking real time shipping status united states postal service performing social networking actions linkedin social networking sites directly within email message.mail offers virtual broom allow users delete move large numbers emails specified folders based senders information.
Outlook.com	sweep performed user may choose configure mail remember sweep settings perform move delete actions future emails.users may also set custom message rules based senders recipients information subject email attachments email.also option deletemove messages older specified number days keep latest message sender.quick views allow users filter emails folders document attachments photo attachments flagged messages shipping updates.oneclick filters allow users filter inbox specific folder based whether email message unread people service list group mailing lists social networking website à la linkedin.categories appear quick views ease access.
Outlook.com	calendar outlooks timemanagement web application first released january windows live calendar updated wave release june .updated microsofts metro design phased rollout users april .calendar features similar interface desktop calendar applications windows calendar supports icalendar files users import calendar entries calendars.uses ajax technology enables users view add draganddrop calendar events one date another without reloading page features daily weekly monthly agenda view modes.also features todo list function users keep track tasks completed.calendar events stored online viewed location.multiple calendars created shared allowing different levels permissions user.
Outlook.com	people outlooks contacts management service originally known windows live contacts windows live people.provides users access contacts profiles information allowing share different information different groups people.besides address book people also provides integrated services social media facebook twitter.service rebranded current name introducing new interface based metro design language already introduced outlook.com.contacts automatically updated realtime service allows removal duplicated contact entries imported profile.users also set limits parts contact details seen others.
Outlook.com	task management component outlook.com introduced transition office based infrastructure.mail client access outlook.com supports email clients connecting following protocols listed chronological orderwebdav used outlook express discontinued september .microsoft outlook introduced microsoft office xp included integrated support outlook.com accounts.deltasync used microsoft outlook hotmail connector free plugin microsoft outlook .using outlook connector users freely access email messages contacts calendars outlook.com account though access tasks notes requires premium subscription.another alternative users use windows live mail desktop client builtin support hotmail.post office protocol version pop access made available hotmail accounts part wave release adding support access hotmail email client supported protocol.exchange activesync eas support added part hotmail wave release allowing users synchronise email also contacts calendar device supports eas.on september microsoft added support internet message access protocol imap oauth.in november microsoft added feature users emails read aloud outlook app.controversy popularity spammers like many free webmail services hotmail often used spammers illicit purposes junk chain mailing unwanted marketing due wide availability service popularity ease registration new accounts.
Outlook.com	hotmail amended service agreement stating account engaging activities would terminated without warning.requests contact details ability associate outlook.com accounts mobile phones email addresses initially advertised optional feature.however update required many users associate accounts website would allow log – refusal could sidestepped using app windows live mail access account instead web browser remains possible associate account oneuse otherwise disposable email address.users also saw messages accounts would expire continued use anonymously.us government surveillance according theguardian.com several topsecret internal national security agency nsa newsletters indicate microsoft allowed nsa access chats emails outlook.com implemented bypass advertised encryption order facilitate government access.one newsletter entry dated december shows microsoft developed surveillance capability deal interception encrypted chats outlook.com within five months service went public testing.another entry states prism collection hotmail live outlook.com emails unaffected prism collects data prior encryption.in response report microsoft stated among things upgrade update products arent absolved need comply existing future lawful demands aspects debate wish able discuss freely.
Security Content Automation Protocol	see also comparison webmail providers references external links official websitefisma federal information security management act compliance.national vulnerability database nvd u.s. government content repository scap.example implementation scap openscap.purpose guard security threats organizations need continuously monitor computer systems applications deployed incorporate security upgrades software deploy updates configurations.security content automation protocol scap pronounced esscap commonly skap comprises number open standards widely used enumerate software flaws configuration issues related security.
Security Content Automation Protocol	applications conduct security monitoring use standards measuring systems find vulnerabilities offer methods score findings order evaluate possible impact.scap suite specifications standardize nomenclature formats used automated vulnerability management measurement policy compliance products.a vendor computer system configuration scanner get product validated scap demonstrating interoperate scanners express scan results standardized way.scap defines following standards referred scap components combined scap components starting scap version .november common vulnerabilities exposures cvecommon configuration enumeration cce prior website mitrecommon platform enumeration cpecommon vulnerability scoring system cvssextensible configuration checklist description format xccdfopen vulnerability assessment language ovalstarting scap version .february open checklist interactive language ocil version .starting scap version .september asset identification aidasset reporting format arfcommon configuration scoring system ccsstrust model security automation data tmsadstarting scap version .
Security Content Automation Protocol	february software identification swid tags scap checklists security content automation protocol scap checklists standardize enable automation linkage computer security configurations nist special publication sp controls framework.current version scap meant perform initial measurement continuous monitoring security settings corresponding sp controls.future versions likely standardize enable automation implementing changing security settings corresponding sp controls.way scap contributes implementation assessment monitoring steps nist risk management framework.accordingly scap forms integral part nist fisma implementation project.
Embedded OpenType	scap validation program scap validation program tests ability products employ scap standards.nist national voluntary laboratory accreditation program nvlap accredits independent laboratories program perform scap validations.a vendor seeking validation product contact nvlap accredited scap validation laboratory assistance validation process.a customer subject fisma requirements wants use security products tested validated scap standard independent third party laboratory visit scap validated products web page verify status products considered.external links security content automation protocol web sitenational vulnerability database web sitemitre making security measurable web sitescap searchfiles use extension .eot.supported microsoft internet explorer opposed competing woff files.overview eot font files created existing truetype font files using microsofts web embedding fonts tool weft proprietary open source software see “external links” below.the font files made small size use subsetting including needed characters data compression lz compression part agfas microtype express.like otf fonts eot supports postscript truetype outlines glyphs.simply including fonts webpages might lead unrestricted copying copyrighted font files.embedded opentype includes features discourage copying.subsetting reduces value copying subsetted fonts typically omit half characters.
Embedded OpenType	copy protection measures used encryption list trusted roots source end proprietary decrypting library receiving end.if embedded font available web page reason missing font file wrong keys file nonsupport web browser secondchoice font specification used ensuring page readable even without intended font.embedded opentype proprietary standard supported exclusively internet explorer submitted wc part css rejected resubmitted standalone submission march .wc team comment submission states wc plans submit proposal wc members working group whose goal try develop eot wc recommendation.however wc ultimately chose different web font format woff wc recommendation.support format built microsoft edge successor internet explorer.web embedding fonts tool web embedding fonts tool weft microsofts utility generating embeddable web fonts.weft used webmasters create font objects linked web pages users using microsofts internet explorer web browser see pages displayed font style contained within font object.weft scans html document files truetype font files additional parameters.
Embedded OpenType	adjusts html files creates embedded opentype files inclusion web site.files usually use extension .eot.weft embed fonts embed fonts designated embedding fonts designers.weft may reject fonts problems identified.in past embedded fonts widely used generate nonenglishlanguage websites.as january recent version tool weft .released february .tool longer offered microsoft download.an open source alternative ttfeot.microsoft powerpoint also generate .eot files .fntdata extension fonts selected embedded presentation powerpoint client application.
Mortgage-backed security	.eot files extracted .pptx file used directly web pages.security issues critical security update windows vista kb resolves several security issues could allow remote code execution user viewed content rendered specially crafted embedded opentype eot font.fonts could embedded web sites including host userprovided content.see also web typographyweb open font format woff references external links microsoft typography font embedding webmicrosoft typography web embedding fonts tooleotutils – opensource free software make eot fonts wcttfeot – opensource free software convert font ttf eotcss fontscompatibility table support eot fonts browserswc submission describing formatminutes wc fonts working group october mime registrationgoogle web fontsmortgages aggregated sold group individuals government agency investment bank securitizes packages loans together security investors buy.bonds securitizing mortgages usually treated separate class termed residential another class commercial depending whether underlying asset mortgages owned borrowers assets commercial purposes ranging office space multidwelling buildings.the structure mbs may known passthrough interest principal payments borrower homebuyer pass mbs holder may complex made pool mbss.types mbs include collateralized mortgage obligations cmos often structured real estate mortgage investment conduits collateralized debt obligations cdos.a mortgage bond bond backed pool mortgages real estate asset house.generally bonds secured pledge specific assets called mortgage bonds.mortgage bonds pay interest either monthly quarterly semiannual periods.
Mortgage-backed security	prevalence mortgage bonds commonly credited mike vranos.the shares subprime mbss issued various structures cmos identical rather issued tranches french slices different level priority debt repayment stream giving different levels risk reward.tranches mbs —especially lowerpriority higherinterest tranches— arewere often repackaged resold collateralized debt obligations.subprime mbss issued investment banks major issue subprime mortgage crisis –.the total face value mbs decreases time like mortgages unlike bonds fixedincome securities principal mbs paid back single payment bond holder maturity rather paid along interest periodic payment monthly quarterly etc.. decrease face value measured mbss factor percentage original face remains repaid.in united states mbss may issued structures set governmentsponsored enterprises like fannie mae freddie mac privatelabel issued structures set investment banks.securitization process securitization complex depends greatly jurisdiction within process conducted.among things securitization distributes risk permits investors choose different levels investment risk.
Mortgage-backed security	basics aremortgage loans mortgage notes purchased banks lenders possibly assigned special purpose vehicle spv.the purchaser assignee assembles loans collections pools.the purchaser assignee securitizes pools issuing mortgagebacked securities.while residential mortgagebacked security rmbs secured singlefamily two fourfamily real estate commercial mortgagebacked security cmbs secured commercial multifamily properties apartment buildings retail office properties hotels schools industrial properties commercial sites.cmbs usually structured different type security rmbs.these securitization trusts may structured governmentsponsored enterprises well private entities may offer credit enhancement features mitigate risk prepayment default associated mortgages.since residential mortgage holders united states option pay required monthly payment curtailment pay loan entirety prepayment monthly cash flow mbs known advance mbs therefore presents risk investors.in united states common securitization trusts sponsored fannie mae freddie mac us governmentsponsored enterprises.ginnie mae us governmentsponsored enterprise backed full faith credit us government guarantees investors receive timely payments buys limited numbers mortgage notes.private institutions also securitize mortgages known privatelabel mortgage securities.
Mortgage-backed security	issuances privatelabel mortgagebacked securities increased dramatically ended abruptly real estate markets began falter.example privatelabel issuer real estate mortgage investment conduit remic taxstructure entity usually used cmos among things remic structure avoids socalled double taxation.advantages disadvantages securitization mortgages advantage providing capital housing time demographic bulge baby boomers created housing shortage inflation undermining traditional source housing funding savings loan associations thrifts limited providing uncompetitive .interest rates savings accounts consequently losing savers money money market funds.unlike traditional localized inefficient mortgage market might shortage surplus funds one time mbss national scope regionally diversified.
Mortgage-backed security	mortgage backed securities helped move interest rate banking sector facilitated greater specialization among financial institutions.however mortgagebacked securities may led inexorably rise subprime industry created hidden systemic risks.also undid connection borrowers lenders.historically less people lost homes foreclosure securitization lender sold mortgage longer stake whether borrower could make payments.history among early examples mortgagebacked securities united states slave mortgage bonds early th century farm railroad mortgage bonds midth century may contributed panic .also extensive commercial mbs market s. us government part new deal following great depression us federal government created federal housing administration fha national housing act assist construction acquisition rehabilitation residential properties.
Mortgage-backed security	fha helped develop standardize fixedrate mortgage alternative balloon payment mortgage insuring helped mortgage design garner usage.in government also created governmentsponsored corporation fannie mae create liquid secondary market mortgages thereby free loan originators originate loans primarily buying fhainsured mortgages.part housing urban development act fannie mae split current fannie mae ginnie mae support fhainsured mortgages well veterans administration va farmers home administration fmha insured mortgages full faith credit us government.federal government authorized fannie mae purchase private mortgages—that insured fha va fmha created freddie mac perform role similar fannie mae.ginnie mae invest private mortgages.securitization ginnie mae guaranteed first mortgage passthrough security approved lender .
Mortgage-backed security	freddie mac issued first mortgage passthrough called participation certificate composed primarily private mortgages.fannie mae issued first mortgage passthrough called mortgagebacked security.freddie mac issued first collateralized mortgage obligation.in government enacted real estate investment trust act allow creation real estate investment trust reit encourage real estate investment bank america issued first private label passthrough.federal reserve board amended regulation allow brokerdealers use passthroughs margin collateral equivalent overthecounter nonconvertible bonds.government passed secondary mortgage market enhancement act improve marketability private label passthroughs declared nationally recognized statistical rating organization aarated mortgagebacked securities legal investments equivalent treasury securities federal government bonds federally chartered banks federal savings banks federal savings associations statechartered financial institutions depository banks insurance companies unless overridden state law october states department labor–regulated pension funds.the tax reform act allowed creation taxexempt real estate mortgage investment conduit remic special purpose vehicle express purpose issuing passthroughs.
Mortgage-backed security	tax reform act significantly contributed savings loan crisis resulted financial institutions reform recovery enforcement act dramatically changed savings loan industry federal regulation encouraging loan origination.subprime mortgage crisis lowquality mortgagebacked securities backed subprime mortgages united states caused crisis played major role – global financial crisis.market highquality mortgagebacked securities recovered profit center us banks.types bonds backed mortgages classified mbs.confusing security derived mbs also called mbs.
Mortgage-backed security	distinguish basic mbs bond mortgagebacked instruments qualifier passthrough used way vanilla designates option special features.subtypes mortgagebacked security includepassthrough securities issued trust allocate cash flows underlying pool securities holders pro rata basis.trust issues passthrough certificates taxed grantor trust rules internal revenue code.rules holder passthrough certificate taxed direct owner portion trust allocatable certificate.order issuer recognized trust tax purposes significant power trust agreement change composition asset pool otherwise reinvest payments received trust must limited exceptions single class ownership interests.a residential mortgagebacked security rmbs passthrough mbs backed mortgages residential property.a commercial mortgagebacked security cmbs passthrough mbs backed mortgages commercial property.a collateralized mortgage obligation paythrough bond debt obligation legal entity collateralized assets owns.paythrough bonds typically divided classes different maturities different priorities receipt principal cases interest.
Mortgage-backed security	often contain sequential pay security structure least two classes mortgagebacked securities issued one class receiving scheduled principal payments prepayments class.paythrough securities classified debt income tax purposes.a stripped mortgagebacked security smbs mortgage payment partly used pay loans principal partly used pay interest it.two components separated create smbss two subtypesan interestonly stripped mortgagebacked security io bond cash flows backed interest component property owners mortgage payments.a net interest margin security nims resecuritized residual interest mortgagebacked securitya principalonly stripped mortgagebacked security po bond cash flows backed principal repayment component property owners mortgage payments.there variety underlying mortgage classifications poolprime mortgages conforming mortgages prime borrowers full documentation verification income assets strong credit scores etc.alta mortgages illdefined category generally prime borrowers nonconforming way often lower documentation way vacation home etc.alta mortgages tend larger size subprime loans significantly higher credit quality.example alta loan might individual multiple varying sources income nonowner occupied investment properties often alta loans.
Mortgage-backed security	alta loans conforming loans eligible purchase fannie mae freddie mac.subprime mortgages generally weaker credit scores well little verification income assets high debttoincome ratios etc.jumbo mortgage size loan bigger conforming loan amount set fannie mae freddie mac.mortgage rates jumbo loans somewhat higher conforming loans.these types limited mortgage backed securities.bonds backed mortgages mbss also subtypes.there two types classifications based issuer securityagency government issued securities governmentsponsored enterprise issuers fannie mae freddie mac ginnie mae.fannie mae freddie mac sell short term – month bills auction weekly schedule longerterm – year notes monthly auctions.the underlying mortgages agency mbs one foursingle family residential mortgages only.nonagency privatelabel securities nongovernmental issuers trusts special purpose entities like real estate mortgage investment conduits.the underlying mortgages nonagency mbs backed second mortgage loans manufactured housing loans variety commercial real estate loans addition single family residential mortgages.secondary mortgage market secondary mortgage market market network lenders sell investors buy existing mortgages mbs.large percentage newly originated mortgages sold originators large liquid market packaged mbs sold public private investors including fannie mae freddie mac pension funds insurance companies mutual funds hedge funds.because longterm nature mortgages secondary market essential factor maintaining lender liquidity.
Mortgage-backed security	infusion capital investors provides mortgage lenders banks thrifts mortgage bankers loan originators market loans.addition providing liquidity increasing overall efficiency secondary market smooth geographic credit disparities.however respects particularly subprime riskier mortgages involved secondary mortgage market may exacerbate certain risks volatility.tbas tbas—short tobeannounced securities—involve special type trading mortgagebacked securities.tbas liquid important secondary mortgage market volume trillions dollars annually.
Mortgage-backed security	tbas traded mbs traders notional amounts.settlement days traders make good trades.time choose fractions various pools make tba.agency mortgagebacked securities trade tba market.tba transaction parties agree price delivering given volume agency passthrough mortgagebacked securities specified future date.
Mortgage-backed security	distinguishing feature tba transaction actual identity securities delivered settlement specified date execution “trade date”.instead parties trade agree five general parameters securities delivered issuer mortgage type term coupon month settlement.tbas critical determining ultimate interest rates mortgage borrowers pay since mortgage originators lock rates use tbas hedge exposure.tbas also used hedge many nontba eligible mortgage products hybrid arms nonagency mortgages.covered bonds europe exists type assetbacked bond called covered bond commonly known german term pfandbriefe.covered bonds first created thcentury germany frankfurter hypo began issuing mortgage covered bonds.
Mortgage-backed security	market regulated since creation law governing securities germany .key difference covered bonds mortgagebacked assetbacked securities banks make loans package covered bonds keep loans books.means company mortgage assets books issues covered bond balance sheet grows would occur issued mbs although may still guarantee securities payments.uses many reasons mortgage originators finance activities issuing mortgagebacked securities.mortgagebacked securitiestransform relatively illiquid individual financial assets liquid tradable capital market instrumentsallow mortgage originators replenish funds used additional origination activitiescan used wall street banks monetize credit spread origination underlying mortgage private market transaction yield demanded bond investors bond issuance typically public market transactionare often efficient lowercost source financing comparison bank capital markets financing alternatives.allow issuers diversify financing sources offering alternatives traditional forms debt equity financingallow issuers remove assets balance sheet help improve various financial ratios utilize capital efficiently achieve compliance riskbased capital standardsthe high liquidity mortgagebacked securities means investor wishing take position need deal difficulties theoretical pricing described price bond essentially quoted fair value narrow bidoffer spread.reasons investment speculation entering market include desire hedge drop prepayment rates critical business risk company specializing refinancing.
Mortgage-backed security	market size liquidity second quarter .trillion total outstanding us mortgage debt..trillion total us mortgagerelated securities.trillion securitized guaranteed governmentsponsored enterprises government agencies remaining .
Mortgage-backed security	trillion pooled private mortgage conduits.according bond market association gross us issuance agency mbs see also chart usd .trillion usd .trillion usd .trillion usd .trillion usd .
Mortgage-backed security	trillion pricing valuation weightedaverage maturity wam weighted average coupon wac used valuation passthrough mbs form basis computing cash flows mortgage passthrough.article describes bond year bond coupon rate article describes passthrough mbs billion passthrough passthrough rate .wac month wam.passthrough rate different wac rate investor would receive heshe held passthrough mbs passthrough rate almost always less wac.difference goes servicing costs i.e.
Mortgage-backed security	costs incurred collecting loan payments transferring payments investors.to illustrate concepts consider mortgage pool three mortgage loans following outstanding mortgage balances mortgage rates months remaining maturity weightedaverage maturity weightedaverage maturity wam passthrough mbs average maturities mortgages pool weighted balances issue mbs.note average across mortgages distinct concepts weightedaverage life duration averages across payments single loan.the weightings computed dividing outstanding loan amount total amount outstanding mortgage pool i.e..amounts outstanding amounts issuance initiation mbs.wam example computed followswam .
Mortgage-backed security	× .× .× ...
Mortgage-backed security	.monthsanother measure often used weightedaverage loan age.weightedaverage coupon weightedaverage coupon wac passthrough mbs average coupons mortgages pool weighted original balances issuance mbs.example iswac .× .
Mortgage-backed security	.× ..× ..
Mortgage-backed security	...theoretical pricing pricing vanilla corporate bond based two sources uncertainty default risk credit risk interest rate ir exposure.mbs adds third risk early redemption prepayment.
Mortgage-backed security	number homeowners residential mbs securitizations prepay increases interest rates decrease.one reason phenomenon homeowners refinance lower fixed interest rate.commercial mbs often mitigate risk using call protection.since two sources risk ir prepayment linked solving mathematical models mbs value difficult problem finance.level difficulty rises complexity ir model sophistication prepayment ir dependence point closedform solution i.e.one could written widely known.
Mortgage-backed security	models type numerical methods provide approximate theoretical prices.also required models specify credit risk stochastic function ir correlation.practitioners typically use specialised monte carlo methods modified binomial tree numerical solutions.interest rate risk prepayment risk theoretical pricing models must take account link interest rates loan prepayment speed.mortgage prepayments usually made home sold homeowner refinancing new mortgage presumably lower rate shorter term.
Mortgage-backed security	prepayment classified risk mbs investor despite fact receive money tends occur floating rates drop fixed income bond would valuable negative convexity.words proceeds received would need reinvested lower interest rate.hence term prepayment risk.professional investors generally use arbitragepricing models value mbs.models deploy interest rate scenarios consistent current yield curve drivers econometric prepayment models models homeowner behavior function projected mortgage rates.given market price model produces optionadjusted spread valuation metric takes account risks inherent complex securities.
Mortgage-backed security	drivers prepayment function prepayment risk independent interest rate aseconomic growth correlated increased turnover housing markethome prices inflationunemploymentregulatory risk borrowing requirements tax laws country change change market profoundlydemographic trends shifting risk aversion profile make fixed rate mortgages relatively less attractive credit risk credit risk mortgagebacked securities depends likelihood borrower paying promised cash flows principal interest time.credit rating mbs fairly high becausemost mortgage originations include research mortgage borrowers ability repay try lend creditworthy.important exception nodoc lowdoc loans.some mbs issuers fannie mae freddie mac ginnie mae guarantee homeowner default risk.case ginnie mae guarantee backed full faith credit us federal government.case fannie mae freddie mac two entities lines credit us federal government however lines credit extremely small compared average amount money circulated entities one days business.
Mortgage-backed security	additionally fannie mae freddie mac generally require private mortgage insurance loans borrower provides payment less property value.pooling many mortgages uncorrelated default probabilities creates bond much lower probability total default homeowners able make payments see copula.although risk neutral credit spread theoretically identical mortgage ensemble average mortgage within chance catastrophic loss reduced.if property owner default property remains collateral.although real estate prices move value original loan increases solidity payment guarantees deters borrower default.if mbs underwritten original real estate issuers guarantee rating bonds would much lower.part reason expected adverse selection borrowers improving credit mbss pooled initial credit quality would incentive refinance ultimately joining mbs pool higher credit rating.realworld pricing diversity mbs types wide variety pricing sources.
Mortgage-backed security	general uniform liquid mbs greater transparency availability prices.traders money managers use bloomberg intex analyze mbs pools esoteric products cdos although tools citis yield book barclays point blackrocks anser also prevalent across wall street especially multi–asset class managers.institutions also developed proprietary software.tradeweb used largest bond dealers primaries transact round lots million larger.complex structured products tend trade less frequently involve negotiation.prices complicated mbss well cmos cdos tend subjective often available dealers.for vanilla generic year pools issued fannie mae freddie mac ginnie mae coupons .– one see prices posted tradeweb screen primaries called allocated tba.
Mortgage-backed security	due actual pools shown.forward prices next delivery months since pools cut issuing agency coupon dollar amount revealed.specific pool whose characteristics known would usually trade tba plus x ticks payup depending characteristics.called specified pools since buyer specifies pool characteristic heshe willing pay for.the price mbs pool influenced prepayment speed usually measured units cpr psa.mortgage refinances borrower prepays month prepayment measurement increases.if investor acquired pool premium common higher coupons risk prepayment.
Mortgage-backed security	purchase price investor loses cents every dollar prepaid may significantly decrease yield.likely happen holders highercoupon mortgages larger incentive refinance.conversely may advantageous bondholder borrower prepay lowcoupon mbs pool bought discount .due fact borrower pays back mortgage par.investor purchases bond cents dollar borrower prepays investor gets full dollar back increasing yield.however less likely occur borrowers lowcoupon mortgages lower incentives refinance.the price mbs pool also influenced loan balance.
Mortgage-backed security	common specifications mbs pools loan amount ranges mortgage pool must pass.typically highpremium highcoupon mbss backed mortgages original loan balance larger command largest payups.even though borrower paying market yield dissuaded refinancing small loan balance due high fixed cost involved.low loan balance mid loan balance –high loan balance –super high loan balance –tba plurality factors makes difficult calculate value mbs security.often market participants concur resulting large differences quoted prices instrument.practitioners constantly try improve prepayment models hope measure values input variables implied market.
Mortgage-backed security	varying liquidity premiums related instruments changing liquidity time make difficult task.one factor used express price mbs security pool factor.recording mortgage electronic registration systems one critical component securitization system us market mortgage electronic registration systems mers created created private system wherein underlying mortgages assigned reassigned outside traditional countylevel recording process.legitimacy overall accuracy alternative recording system faced serious challenges onset mortgage crisis us courts flood foreclosure cases inadequacies mers model exposed local federal governments begun take action suits refusal jurisdictions courts recognize legal authority mers assignments.assignment mortgage deed trust note obligation pay debt paperwork outside traditional us county courts without recordation fee payment subject legal challenge.
Mortgage-backed security	legal inconsistencies mers originally appeared trivial may reflect dysfunctionality entire us mortgage securitization industry.see also notesbank america home loansdollar rolllewis ranieri father mbssnew centuryunited states housing bubble references bibliography external links vink dennis thibeault andré .abs mbs cdo compared empirical analysis journal structured financemore mortgage madness kai wright nation april mbs basics mortgage news daily mbs commentarywhat mortgagebacked security chris wilson slate magazinetba trading liquidity agency mbs market federal reserve bank new yorkmortgages aggregated sold group individuals government agency investment bank securitizes packages loans together security investors buy.bonds securitizing mortgages usually treated separate class termed residential another class commercial depending whether underlying asset mortgages owned borrowers assets commercial purposes ranging office space multidwelling buildings.the structure mbs may known passthrough interest principal payments borrower homebuyer pass mbs holder may complex made pool mbss.types mbs include collateralized mortgage obligations cmos often structured real estate mortgage investment conduits collateralized debt obligations cdos.a mortgage bond bond backed pool mortgages real estate asset house.generally bonds secured pledge specific assets called mortgage bonds.mortgage bonds pay interest either monthly quarterly semiannual periods.
Mortgage-backed security	prevalence mortgage bonds commonly credited mike vranos.the shares subprime mbss issued various structures cmos identical rather issued tranches french slices different level priority debt repayment stream giving different levels risk reward.tranches mbs —especially lowerpriority higherinterest tranches— arewere often repackaged resold collateralized debt obligations.subprime mbss issued investment banks major issue subprime mortgage crisis –.the total face value mbs decreases time like mortgages unlike bonds fixedincome securities principal mbs paid back single payment bond holder maturity rather paid along interest periodic payment monthly quarterly etc.. decrease face value measured mbss factor percentage original face remains repaid.in united states mbss may issued structures set governmentsponsored enterprises like fannie mae freddie mac privatelabel issued structures set investment banks.securitization process securitization complex depends greatly jurisdiction within process conducted.among things securitization distributes risk permits investors choose different levels investment risk.
Mortgage-backed security	basics aremortgage loans mortgage notes purchased banks lenders possibly assigned special purpose vehicle spv.the purchaser assignee assembles loans collections pools.the purchaser assignee securitizes pools issuing mortgagebacked securities.while residential mortgagebacked security rmbs secured singlefamily two fourfamily real estate commercial mortgagebacked security cmbs secured commercial multifamily properties apartment buildings retail office properties hotels schools industrial properties commercial sites.cmbs usually structured different type security rmbs.these securitization trusts may structured governmentsponsored enterprises well private entities may offer credit enhancement features mitigate risk prepayment default associated mortgages.since residential mortgage holders united states option pay required monthly payment curtailment pay loan entirety prepayment monthly cash flow mbs known advance mbs therefore presents risk investors.in united states common securitization trusts sponsored fannie mae freddie mac us governmentsponsored enterprises.ginnie mae us governmentsponsored enterprise backed full faith credit us government guarantees investors receive timely payments buys limited numbers mortgage notes.private institutions also securitize mortgages known privatelabel mortgage securities.
Mortgage-backed security	issuances privatelabel mortgagebacked securities increased dramatically ended abruptly real estate markets began falter.example privatelabel issuer real estate mortgage investment conduit remic taxstructure entity usually used cmos among things remic structure avoids socalled double taxation.advantages disadvantages securitization mortgages advantage providing capital housing time demographic bulge baby boomers created housing shortage inflation undermining traditional source housing funding savings loan associations thrifts limited providing uncompetitive .interest rates savings accounts consequently losing savers money money market funds.unlike traditional localized inefficient mortgage market might shortage surplus funds one time mbss national scope regionally diversified.
Mortgage-backed security	mortgage backed securities helped move interest rate banking sector facilitated greater specialization among financial institutions.however mortgagebacked securities may led inexorably rise subprime industry created hidden systemic risks.also undid connection borrowers lenders.historically less people lost homes foreclosure securitization lender sold mortgage longer stake whether borrower could make payments.history among early examples mortgagebacked securities united states slave mortgage bonds early th century farm railroad mortgage bonds midth century may contributed panic .also extensive commercial mbs market s. us government part new deal following great depression us federal government created federal housing administration fha national housing act assist construction acquisition rehabilitation residential properties.
Mortgage-backed security	fha helped develop standardize fixedrate mortgage alternative balloon payment mortgage insuring helped mortgage design garner usage.in government also created governmentsponsored corporation fannie mae create liquid secondary market mortgages thereby free loan originators originate loans primarily buying fhainsured mortgages.part housing urban development act fannie mae split current fannie mae ginnie mae support fhainsured mortgages well veterans administration va farmers home administration fmha insured mortgages full faith credit us government.federal government authorized fannie mae purchase private mortgages—that insured fha va fmha created freddie mac perform role similar fannie mae.ginnie mae invest private mortgages.securitization ginnie mae guaranteed first mortgage passthrough security approved lender .
Mortgage-backed security	freddie mac issued first mortgage passthrough called participation certificate composed primarily private mortgages.fannie mae issued first mortgage passthrough called mortgagebacked security.freddie mac issued first collateralized mortgage obligation.in government enacted real estate investment trust act allow creation real estate investment trust reit encourage real estate investment bank america issued first private label passthrough.federal reserve board amended regulation allow brokerdealers use passthroughs margin collateral equivalent overthecounter nonconvertible bonds.government passed secondary mortgage market enhancement act improve marketability private label passthroughs declared nationally recognized statistical rating organization aarated mortgagebacked securities legal investments equivalent treasury securities federal government bonds federally chartered banks federal savings banks federal savings associations statechartered financial institutions depository banks insurance companies unless overridden state law october states department labor–regulated pension funds.the tax reform act allowed creation taxexempt real estate mortgage investment conduit remic special purpose vehicle express purpose issuing passthroughs.
Mortgage-backed security	tax reform act significantly contributed savings loan crisis resulted financial institutions reform recovery enforcement act dramatically changed savings loan industry federal regulation encouraging loan origination.subprime mortgage crisis lowquality mortgagebacked securities backed subprime mortgages united states caused crisis played major role – global financial crisis.market highquality mortgagebacked securities recovered profit center us banks.types bonds backed mortgages classified mbs.confusing security derived mbs also called mbs.
Mortgage-backed security	distinguish basic mbs bond mortgagebacked instruments qualifier passthrough used way vanilla designates option special features.subtypes mortgagebacked security includepassthrough securities issued trust allocate cash flows underlying pool securities holders pro rata basis.trust issues passthrough certificates taxed grantor trust rules internal revenue code.rules holder passthrough certificate taxed direct owner portion trust allocatable certificate.order issuer recognized trust tax purposes significant power trust agreement change composition asset pool otherwise reinvest payments received trust must limited exceptions single class ownership interests.a residential mortgagebacked security rmbs passthrough mbs backed mortgages residential property.a commercial mortgagebacked security cmbs passthrough mbs backed mortgages commercial property.a collateralized mortgage obligation paythrough bond debt obligation legal entity collateralized assets owns.paythrough bonds typically divided classes different maturities different priorities receipt principal cases interest.
Mortgage-backed security	often contain sequential pay security structure least two classes mortgagebacked securities issued one class receiving scheduled principal payments prepayments class.paythrough securities classified debt income tax purposes.a stripped mortgagebacked security smbs mortgage payment partly used pay loans principal partly used pay interest it.two components separated create smbss two subtypesan interestonly stripped mortgagebacked security io bond cash flows backed interest component property owners mortgage payments.a net interest margin security nims resecuritized residual interest mortgagebacked securitya principalonly stripped mortgagebacked security po bond cash flows backed principal repayment component property owners mortgage payments.there variety underlying mortgage classifications poolprime mortgages conforming mortgages prime borrowers full documentation verification income assets strong credit scores etc.alta mortgages illdefined category generally prime borrowers nonconforming way often lower documentation way vacation home etc.alta mortgages tend larger size subprime loans significantly higher credit quality.example alta loan might individual multiple varying sources income nonowner occupied investment properties often alta loans.
Mortgage-backed security	alta loans conforming loans eligible purchase fannie mae freddie mac.subprime mortgages generally weaker credit scores well little verification income assets high debttoincome ratios etc.jumbo mortgage size loan bigger conforming loan amount set fannie mae freddie mac.mortgage rates jumbo loans somewhat higher conforming loans.these types limited mortgage backed securities.bonds backed mortgages mbss also subtypes.there two types classifications based issuer securityagency government issued securities governmentsponsored enterprise issuers fannie mae freddie mac ginnie mae.fannie mae freddie mac sell short term – month bills auction weekly schedule longerterm – year notes monthly auctions.the underlying mortgages agency mbs one foursingle family residential mortgages only.nonagency privatelabel securities nongovernmental issuers trusts special purpose entities like real estate mortgage investment conduits.the underlying mortgages nonagency mbs backed second mortgage loans manufactured housing loans variety commercial real estate loans addition single family residential mortgages.secondary mortgage market secondary mortgage market market network lenders sell investors buy existing mortgages mbs.large percentage newly originated mortgages sold originators large liquid market packaged mbs sold public private investors including fannie mae freddie mac pension funds insurance companies mutual funds hedge funds.because longterm nature mortgages secondary market essential factor maintaining lender liquidity.
Mortgage-backed security	infusion capital investors provides mortgage lenders banks thrifts mortgage bankers loan originators market loans.addition providing liquidity increasing overall efficiency secondary market smooth geographic credit disparities.however respects particularly subprime riskier mortgages involved secondary mortgage market may exacerbate certain risks volatility.tbas tbas—short tobeannounced securities—involve special type trading mortgagebacked securities.tbas liquid important secondary mortgage market volume trillions dollars annually.
Mortgage-backed security	tbas traded mbs traders notional amounts.settlement days traders make good trades.time choose fractions various pools make tba.agency mortgagebacked securities trade tba market.tba transaction parties agree price delivering given volume agency passthrough mortgagebacked securities specified future date.
Mortgage-backed security	distinguishing feature tba transaction actual identity securities delivered settlement specified date execution “trade date”.instead parties trade agree five general parameters securities delivered issuer mortgage type term coupon month settlement.tbas critical determining ultimate interest rates mortgage borrowers pay since mortgage originators lock rates use tbas hedge exposure.tbas also used hedge many nontba eligible mortgage products hybrid arms nonagency mortgages.covered bonds europe exists type assetbacked bond called covered bond commonly known german term pfandbriefe.covered bonds first created thcentury germany frankfurter hypo began issuing mortgage covered bonds.
Mortgage-backed security	market regulated since creation law governing securities germany .key difference covered bonds mortgagebacked assetbacked securities banks make loans package covered bonds keep loans books.means company mortgage assets books issues covered bond balance sheet grows would occur issued mbs although may still guarantee securities payments.uses many reasons mortgage originators finance activities issuing mortgagebacked securities.mortgagebacked securitiestransform relatively illiquid individual financial assets liquid tradable capital market instrumentsallow mortgage originators replenish funds used additional origination activitiescan used wall street banks monetize credit spread origination underlying mortgage private market transaction yield demanded bond investors bond issuance typically public market transactionare often efficient lowercost source financing comparison bank capital markets financing alternatives.allow issuers diversify financing sources offering alternatives traditional forms debt equity financingallow issuers remove assets balance sheet help improve various financial ratios utilize capital efficiently achieve compliance riskbased capital standardsthe high liquidity mortgagebacked securities means investor wishing take position need deal difficulties theoretical pricing described price bond essentially quoted fair value narrow bidoffer spread.reasons investment speculation entering market include desire hedge drop prepayment rates critical business risk company specializing refinancing.
Mortgage-backed security	market size liquidity second quarter .trillion total outstanding us mortgage debt..trillion total us mortgagerelated securities.trillion securitized guaranteed governmentsponsored enterprises government agencies remaining .
Mortgage-backed security	trillion pooled private mortgage conduits.according bond market association gross us issuance agency mbs see also chart usd .trillion usd .trillion usd .trillion usd .trillion usd .
Mortgage-backed security	trillion pricing valuation weightedaverage maturity wam weighted average coupon wac used valuation passthrough mbs form basis computing cash flows mortgage passthrough.article describes bond year bond coupon rate article describes passthrough mbs billion passthrough passthrough rate .wac month wam.passthrough rate different wac rate investor would receive heshe held passthrough mbs passthrough rate almost always less wac.difference goes servicing costs i.e.
Mortgage-backed security	costs incurred collecting loan payments transferring payments investors.to illustrate concepts consider mortgage pool three mortgage loans following outstanding mortgage balances mortgage rates months remaining maturity weightedaverage maturity weightedaverage maturity wam passthrough mbs average maturities mortgages pool weighted balances issue mbs.note average across mortgages distinct concepts weightedaverage life duration averages across payments single loan.the weightings computed dividing outstanding loan amount total amount outstanding mortgage pool i.e..amounts outstanding amounts issuance initiation mbs.wam example computed followswam .
Mortgage-backed security	× .× .× ...
Mortgage-backed security	.monthsanother measure often used weightedaverage loan age.weightedaverage coupon weightedaverage coupon wac passthrough mbs average coupons mortgages pool weighted original balances issuance mbs.example iswac .× .
Mortgage-backed security	.× ..× ..
Mortgage-backed security	...theoretical pricing pricing vanilla corporate bond based two sources uncertainty default risk credit risk interest rate ir exposure.mbs adds third risk early redemption prepayment.
Mortgage-backed security	number homeowners residential mbs securitizations prepay increases interest rates decrease.one reason phenomenon homeowners refinance lower fixed interest rate.commercial mbs often mitigate risk using call protection.since two sources risk ir prepayment linked solving mathematical models mbs value difficult problem finance.level difficulty rises complexity ir model sophistication prepayment ir dependence point closedform solution i.e.one could written widely known.
Mortgage-backed security	models type numerical methods provide approximate theoretical prices.also required models specify credit risk stochastic function ir correlation.practitioners typically use specialised monte carlo methods modified binomial tree numerical solutions.interest rate risk prepayment risk theoretical pricing models must take account link interest rates loan prepayment speed.mortgage prepayments usually made home sold homeowner refinancing new mortgage presumably lower rate shorter term.
Mortgage-backed security	prepayment classified risk mbs investor despite fact receive money tends occur floating rates drop fixed income bond would valuable negative convexity.words proceeds received would need reinvested lower interest rate.hence term prepayment risk.professional investors generally use arbitragepricing models value mbs.models deploy interest rate scenarios consistent current yield curve drivers econometric prepayment models models homeowner behavior function projected mortgage rates.given market price model produces optionadjusted spread valuation metric takes account risks inherent complex securities.
Mortgage-backed security	drivers prepayment function prepayment risk independent interest rate aseconomic growth correlated increased turnover housing markethome prices inflationunemploymentregulatory risk borrowing requirements tax laws country change change market profoundlydemographic trends shifting risk aversion profile make fixed rate mortgages relatively less attractive credit risk credit risk mortgagebacked securities depends likelihood borrower paying promised cash flows principal interest time.credit rating mbs fairly high becausemost mortgage originations include research mortgage borrowers ability repay try lend creditworthy.important exception nodoc lowdoc loans.some mbs issuers fannie mae freddie mac ginnie mae guarantee homeowner default risk.case ginnie mae guarantee backed full faith credit us federal government.case fannie mae freddie mac two entities lines credit us federal government however lines credit extremely small compared average amount money circulated entities one days business.
Mortgage-backed security	additionally fannie mae freddie mac generally require private mortgage insurance loans borrower provides payment less property value.pooling many mortgages uncorrelated default probabilities creates bond much lower probability total default homeowners able make payments see copula.although risk neutral credit spread theoretically identical mortgage ensemble average mortgage within chance catastrophic loss reduced.if property owner default property remains collateral.although real estate prices move value original loan increases solidity payment guarantees deters borrower default.if mbs underwritten original real estate issuers guarantee rating bonds would much lower.part reason expected adverse selection borrowers improving credit mbss pooled initial credit quality would incentive refinance ultimately joining mbs pool higher credit rating.realworld pricing diversity mbs types wide variety pricing sources.
Mortgage-backed security	general uniform liquid mbs greater transparency availability prices.traders money managers use bloomberg intex analyze mbs pools esoteric products cdos although tools citis yield book barclays point blackrocks anser also prevalent across wall street especially multi–asset class managers.institutions also developed proprietary software.tradeweb used largest bond dealers primaries transact round lots million larger.complex structured products tend trade less frequently involve negotiation.prices complicated mbss well cmos cdos tend subjective often available dealers.for vanilla generic year pools issued fannie mae freddie mac ginnie mae coupons .– one see prices posted tradeweb screen primaries called allocated tba.
Mortgage-backed security	due actual pools shown.forward prices next delivery months since pools cut issuing agency coupon dollar amount revealed.specific pool whose characteristics known would usually trade tba plus x ticks payup depending characteristics.called specified pools since buyer specifies pool characteristic heshe willing pay for.the price mbs pool influenced prepayment speed usually measured units cpr psa.mortgage refinances borrower prepays month prepayment measurement increases.if investor acquired pool premium common higher coupons risk prepayment.
Mortgage-backed security	purchase price investor loses cents every dollar prepaid may significantly decrease yield.likely happen holders highercoupon mortgages larger incentive refinance.conversely may advantageous bondholder borrower prepay lowcoupon mbs pool bought discount .due fact borrower pays back mortgage par.investor purchases bond cents dollar borrower prepays investor gets full dollar back increasing yield.however less likely occur borrowers lowcoupon mortgages lower incentives refinance.the price mbs pool also influenced loan balance.

Subsets and Splits

No community queries yet

The top public SQL queries from the community will appear here once available.