Securitization

Securitization - Securitization Kade Miller Nate Woodbury...

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Unformatted text preview: Securitization Kade Miller Nate Woodbury Bryce McConkie Jennifer Hall Overview • Example and Explanation of Securitization • Mortgage Backed Securities • Pros and Cons • Securitization and the Housing Crisis of 2007 Bowie Bonds & Securitization • Sold rights to future revenues • Received present value of expected cash flows • Purchaser repackaged right to future revenue as securities (Bowie Bonds) and sold them Explanation • Originator converts receivables into cash today o Additional Lending o Investments • Creates liquid markets for otherwise illiquid assets • Additional funds pouring into US, fueling growth Explanation • Originator converts receivables into cash today o Additional Lending o Investments • Creates liquid markets for otherwise illiquid assets • Additional funds pouring into US, fueling growth Mortgage-backed Securities http://www.investopedia.com/video/play/what-are-mortgage-backed-securities#axzz1a1H Explanation • Originator converts receivables into cash today...
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This note was uploaded on 12/29/2011 for the course BUS 453 taught by Professor Jerrynelson during the Fall '11 term at BYU.

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Securitization - Securitization Kade Miller Nate Woodbury...

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