Your boss does not have an understanding of asset securitization or its benefits
i need a 2 page
format APA
Sources at
least 2
Language English(U.S.)
Description
As an assistant vice president at a regional bank, your boss
has just informed you that the bank has just made an acquisition of a smaller
bank. Among the assets that will be transferred is $125 million of residential
mortgage debt, which has the same geographic profile as the regional bank’s own
$200 million residential mortgage portfolio. One of the members of the bank’s
Board of Directors asked your boss if he thought it would be possible to
securitize the mortgage debt and use the proceeds to pay down part of the debt
used for the acquisition. Your boss does not have an understanding of asset
securitization or its benefits for the bank but needs to give an answer to the
Board member quickly. Provide the following:
1- A description of 3 kinds of assets that are routinely
securitized in addition to residential mortgages
2- A discussion of the 2 key types of mortgage-backed bonds,
including a discussion on the primary difference between them and why the most
recent structure is attractive to investors
3- The benefits to the regional bank of securitizing and
selling the newly-acquired mortgages instead of retaining them
4- At least 2 outside sources, including one for market size
Please follow all the instructions very carefully. Thank you