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Securitization and Mortgage Backed Securities [Video]

Securitization and Mortgage Backed Securities

Historically, banks were almost entirely reliant on deposits to raise funds. But in the past few decades banks have found alternative sources of funding. One of those sources is securitization.

Securitization is the process of bundling illiquid financial assets and then creating securities that are backed by the cash flows from the pool of financial assets. The financial assets can be packaged in such a way that each bundle of assets has a different risk profile.

Many banks securitize mortgages, for example, which creates a mortgage-backed security (MBS). A mortgage-backed security is a financial instrument that derives its cash flows from a pool of mortgages. You can have residential mortgage-backed securities (RMBS) or commercial mortgage-backed securities (CMBS).

Mortgage-backed securities are a special type of asset-backed security (ABS) where the underlying asset is a mortgage. Asset-backed securities can also be backed by credit card receivables, car loans, student loans, equipment loans, etc.

Valuing mortgage-backed securities and asset-backed securities is difficult because the cash flows are uncertain. This is due to:
• interest rate risk
• prepayment risk
• default risk

Some banks use Monte Carlo simulations to estimate the value of MBS or ABS.

Securitization has several advantages:
• It removes risky, illiquid assets from the bank’s balance sheet
• It reduces the bank’s regulatory capital requirements
• It raises cash and increases liquidity so the bank can underwrite more loans

The investors buying the securities benefit from being able to invest in mortgages (or credit card debt, car loans, etc.) without having to originate or service the mortgages.

Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.

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Resources for Accountants

30-Day Roadmap for New Controller or CFO (My Blueprint) [Video]

Join 10,000+ professionals who enrolled in the Controller Academy 🚀 https://controller-academy.com/courses/controller-academy Get your copy of the 30-day roadmap: https://thefincontroller.com/p/30dayroadmap I am a CPA in the United States and I summarize in the video what new Controllers and CFOs need to focus on during their first 30 days in the role. Videos mentioned during this tutorial: Balance Sheet Reconciliation: https://youtu.be/rXavkEg4Ht0 How to create month-close checklist https://youtu.be/m_SfIf8PKpg Time Stamps: 00:00 Intro 00:36 Agenda 01:15 1. Financial Statement Review 02:46 2. Budget 04:50 3. Internal Controls 08:45 4. Systems 12:41 5. Month-end 14:31 6. People 17:15 7. Compliance 20:15 8. Create 90 day roadmap ----------------------------------- Hang Out with me on social media: 📸 https://www.instagram.com/the_financial_controller/ 📱https://www.tiktok.com/@thefinancialcontroller https://www.linkedin.com/in/bill-hanna-cpa-7653a851/ DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week! All views expressed on my channel are mine alone. Not intended as financial or professional advice

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Resources for Accountants

How to Transition from Startup to Established Company [Video]

The journey from a fledgling startup to an established company is akin to scaling a mountain—fraught with challenges, but also promising breathtaking vistas of growth and success. This transition marks a pivotal moment in the entrepreneurial odyssey, where the agility and creativity that characterized the startup phase must harmonize with the stability and maturity necessary for long-term sustainability. It's a delicate balance, requiring strategic foresight, operational finesse, and unwavering commitment. In this guide, we'll delve into the multifaceted process of transitioning from a startup to an established company, exploring key strategies and best practices to navigate this transformative journey.

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Resources for Accountants

Best US CPA Exam Questions FAR 2023 [Video]

US CPA Exam Questions FAR 2023 is available for subscription from https://zainacademy.us/product/cpa-exam-questions-far-2023/ US CPA Test Bank FAR 2023 contains the 1,800 + multiple choice questions to help you pass US CPA Exam in 1st attempt of American Institute of Certified Public Accountants (AICPA), US.FAR stands for Financial Accounting and Reporting and it is one the challenging US CPA Exam Part. US CPA Exam Questions FAR are also referred to as US CPA Test Bank FAR or US CPA Practice Questions FAR or US CPA Questions and Answers FAR or US CPA Question Bank FAR.Now let’s explore the features of US CPA Practice Questions FAR 2023:• 1,800 + multiple choice questions with explanations of all answer choices• Challenging Questions for Brain• Attempt all possible exam formats• Direct Access to Author helping you in each stage of preparation• Ask Unlimited Questions through WhatsApp (+92 311 222 4261) or Email and get answers to them instantly• US CPA Test Bank are designed for working executives smart learning• Optimized for all screen sizes• Unbeatable Pricing• US CPA Sample Questions FAR are available for free• Aligned 100% with US CPA Course of FARThe benefits of subscribing to the US CPA Questions and Answers FAR 2023 are:• Pass US CPA Exam of FAR in 3 months• Aligned with the AICPA FAR Practice Exam• Get US CPA Certificate with 100% confidence• 360 degrees level of learning• Guaranteed 90% result• Access Until You Pass• No Time and Device Restrictions• Save Time, Money, and Energy• Guidance & Support 24/7• Develop a creative mindset to solve business challenges• Elevate Your Career Prospects• You will not be required to refer to any other US CPA Test Prep available on the planet• Find Yourself and your capability. Time is limitedBecome a US Certified Public Accountant to change your world, well-being and most important yourself.Zain Academy’s purpose is to create the best US CPA Course at affordable pricing. You will get 100% confidence, support, and a guaranteed 90% result.Follow the Zain Academy’s Facebook Page for the latest updates, communications, and reviews.Subscribe to Zain CPA Test Bank FAR 2023 and start the journey of professional excellence.Social Media Presence Web: https://zainacademy.us/ Web: https://mzain.org/ Facebook: https://www.facebook.com/zainacademy YouTube: https://www.youtube.com/c/zainacademy LinkedIn: https://www.linkedin.com/in/mzainhabib/ Twitter: https://twitter.com/mzaincpacmacia Instagram: https://www.instagram.com/mzain.cpa.cma.cia/ Pinterest: https://www.pinterest.com/mzainhabib/ Amazon: https://www.amazon.com/MUHAMMAD-ZAIN/e/B07K2G2R8MTikTok: https://www.tiktok.com/@zain_academy WhatsApp: https://wa.me/923112224261#USCertifiedPublicAccountant #USCPA #USCPAExam #AICPA #USCPACertification #USCPACourse #BestCPATestBank #BestCPAExamQuestions #USCPATestBankFAR #USCPAExamQuestionsFAR #USCPAQuestionBankFAR #USCPAPracticeQuestionsFAR #USCPAQuestionsandAnswersFAR #FAR #FinancialAccountingandReporting

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How to Start a Supermarket Business | Free Supermarket Business Plan Included [Video]

Presenting 50 essential tips for starting a Supermarket business.Now you can get your free business plan template gift here: https://www.bizmove.com/business-gifts.htm This is a high quality, full blown business plan template that you can download and modify to create a quality business plan tailored to your business idea.It comes complete with detailed instructions and all the related spreadsheets. Allows you to easily prepare a professional business plan for your new businessAlso get free small business guides, tools, and worksheets at: https://www.bizmove.com