A Primer on Securitization

Product Details

Gathering fourteen lectures by the pioneers of securitization and by current practitioners--from Freddie Mac, Paine Webber, JP Morgan, Chrysler, McKinsey & Co., and other major players--A Primer on Securitization introduces readers to America's newest system of raising capital: what it is, how it operates, and what difference securitization makes. The securitization process bypasses financial intermediaries that have historically collected deposits and loaned them to those seeking funds, and links borrowers directly to money and capital markets. Authoritative and practical, these lectures show how securitization was developed to fill a gap in financial markets. They discuss the nature and causes of the market imperfections that made securitization a valuable source of funds, and describe how securitization has linked local mortgage markets with international capital markets. Readers will gain a broad perspective of the different parties--the borrower, the loan originator, the servicer, the rating agency, the special purpose vehicle, the credit enhancer, the underwriter, and the investor--as well as a detailed analysis of how these parties relate to one another.

Customer Reviews ::

Great background but dated - Gregory Blecha - Jupiter, FL
Kendalll and Fishman's book provided a wonderful historical perspective on the rise of mortgage-backed securities, including the roles played by several of the GSEs (government-sponsored entities) and the Resolution Trust Corporation, which was responsible for cleaning up the balance sheets of failed S&Ls in the early 1980s. I would have liked to see more math, but other than that, the various lectures describe the demand for securitization, how it benefits the housing market, as well as how mortgage-backed securities were received by institutional investors.

As has been noted in other reviews, you have to ignore the publication date of July 31, 2000 because most of the lectures were collected from the mid-1990s! Also, it's difficult to understand the perspective of each article, because there is no detailed biography of the contributor.

Despite these caveats, the articles are very well written, and the historical perspective is quite valuable.

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