The Structured Finance Market: An Investor's Perspective
Posted: 24 Jun 2005
The largest sector of the U.S. investment-grade fixed-income market is structured products - mortgage-backed securities and asset-backed securities. Issues and challenges currently facing investors who participate in this market sector include legal issues (e.g., consumer lending legislation), market structure (e.g., the role of the government-sponsored enterprises), and analytical methods (e.g., prepayment modeling). An important current concern is the need for education and training in the structured products area - particularly for investment policy compliance staff and for equity analysts.
Keywords: Debt investments, asset-backed securities (including mortgage-backed securities), bonds with embedded options, credit analysis, derivative instruments, debt derivatives
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