Mortgage Securities: Prepayment Risk

Bond Investment Mentor®

Welcome to Bond Investment Mentor! This is a podcast dedicated to helping community financial institutions master the art of fixed income investments.

In this episode:

• Review of Economic & Finance News
  • May retail sales
  • Fed Chair Powell's Capitol Hill appearances
  • Weekly jobless claims
• Does Anyone Invest in Treasuries Anymore?
• MSRB Weekly COVID-19 Disclosure Summary
  • Link to Summary & Disclosure Spreadsheet
• MBS Prepayment & Prepayment Risk
  • Review: What is prepayment?
  • Voluntary vs. involuntary prepayment
  • What is prepayment risk?
  • Why is prepayment risk important?
  • Measuring prepayment
    • CPR
    • CPB
    • PSA
  • Bloomberg yield tables
    • YT
    • YTR
    • YTH
    • YT BAM
  • Managing prepayment risk
    • What you do and don't control
    • New (TBA) vs. alternative MBS types
    • Collateral analysis
  • What is extension risk?

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

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