Mortgage Derivative

Mortgage Derivative

A security with a value based upon principal and interest payments on a pool of mortgages. This entitles the owner to a claim on the principal and interest payments on the particular mortgages backing the security. The risk of a mortgage derivative ultimately comes from the risk of default of the underlying mortgages. A mortgage-backed security is the most common type of mortgage derivative.
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Boston from 1988 to 1994 and was a mortgage derivative trader at Bear
Last year, Goldman paid USD550m to settle fraud charges from the Securities and Exchange Commission, relating to a particular mortgage derivative, the report said, adding that the US Justice Department is also investigating the bank.
With so many foreign banks buying into our mortgage derivative schemes, no other outcome was possible.
The process of unwinding subprime mortgage derivative swaps and other commercial derivative swaps hasn t materially improved over the last three months but is now being overlooked by investors as the banks are simply not talking about them," Dickson said.
In one form or another, the AIG and mortgage derivative cases share characteristics that result in similar outcomes: Notwithstanding a great many records in many places, the result was not the clarity and certainty those records were supposed to ensure, but opacity, confusion, and staggeringly large financial losses.
Imagine if we had allowed the mortgage derivative markets to do the same thing.
A third major mortgage derivative blowup hit an $827 million mutual fund run by Piper Capital Management, a subsidiary of Piper-Jafray Companies Inc.
The first effort involves an interagency statement issued in February of this year on the proper use by banks of so-called "high risk" derivative instruments-- investments such as interest- or principal-only mortgage derivative securities.
A high-risk mortgage security is defined as any mortgage derivative product that has (1) an expected weighted-average life greater than eight years (i.
He started his financial career at a mortgage derivative hedge fund in the late nineties where he built term-structure and option-pricing models for mortgage related products.
With Lehman Brothers and Bear Stearns evaporating overnight, and many of the world's top investment banks still reeling from the mortgage derivative debacle, finance--the holy grail of MBA students--has virtually vanished as a career option.
Outside of a few notable companies, property/casualty insurers were modestly affected by problems in subprime mortgage and mortgage derivative markets, but recent events that promoted sharper declines in equity markets and a flight to the safety of treasury securities from high-rated corporate and tax-exempt bonds has had a more severe effect on insurers' invested assets and capital position.

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