Asset Pricing pp 251-268 | Cite as

Pricing Mortgage-Backed Securities

  • Takeaki Kariya
  • Regina Y. Liu
Chapter

Abstract

A mortgage-backed security (MBS) is a pass-through security so structured that all the payments made by mortgage holders, except for servicing fees, go to the investors who purchase the securities. In the case of residential mortgage, the payments are usually protected against the default risk of mortgagors by a guaranty institution. A class of residential mortgages is pooled and collateralized, on which MBS’s are securitized.

Keywords

Volatility 

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Copyright information

© Springer Science+Business Media New York 2003

Authors and Affiliations

  • Takeaki Kariya
    • 1
  • Regina Y. Liu
    • 2
  1. 1.Kyoto UniversityJapan
  2. 2.Rutgers UniversityUSA

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