Learn about the components that make up a mortgage and the different types that are offered to borrowers. The final module delves into introducing and pricing Collateralized Mortgage Obligations(CMOs). What is a Mortgage Loan A mortgage loan is a debt instrument that is secured by real estate held by the borrower. A mortgage is more than just a loan for real estate buyers. Welcome to week 5 This week, we will focus on a brand new set of financial products - mortgage. The discussion progresses to Mortgage Backed Securities(MBS) and the associated mortgage mathematics. Video created by for the course 'Term-Structure and Credit Derivatives '. In the fourth module, learners would be introduced to the concept of securitization, specifically asset backed securities(ABS).

The third module introduces credit derivatives and subsequently focuses on modeling and pricing the Credit Default Swaps. Learners will operate model calibration using Excel and apply it to price a payer swaption in a Black-Derman-Toy (BDT) model. In the second module, we will examine model calibration in the context of fixed income securities and extend it to other asset classes and instruments. In the first module we discuss the term structure lattice models and cash account, and then analyze fixed income derivatives, such as Options, Futures, Caplets and Floorlets, Swaps and Swaptions. This course will focus on capturing the evolution of interest rates and providing deep insight into credit derivatives.

Mortgage principal definition