Fixed rate versus floating rate asset backed securities, Financial Management

There are fixed as well as floating rate asset-backed securities. A floating rate asset-backed security is one whose underlying pool consists of loans or receivables carrying a floating rate. Examples of this kind are, securities backed by credit card receivables, student loans, trade receivables, home equity loans, etc. On the other hand, a fixed rate asset-backed security is structured in such a way that the underlying pool consists of fixed-rate loans but the security is divided into one or more floating rate tranches. For example, equity loans carrying fixed rate can be pooled to create a structure with floating-rate tranches.

Posted Date: 9/8/2012 9:06:33 AM | Location : United States







Related Discussions:- Fixed rate versus floating rate asset backed securities, Assignment Help, Ask Question on Fixed rate versus floating rate asset backed securities, Get Answer, Expert's Help, Fixed rate versus floating rate asset backed securities Discussions

Write discussion on Fixed rate versus floating rate asset backed securities
Your posts are moderated
Related Questions
Assessment of in individual strengths and weaknesses Before finalizing career plan for an individual and placing him on career path, it is necessary to access his strengths and

Portfolio Management: Project Portfolio Management (PPM) is the centralized management of processes, technologies and methods used by project management offices (PMOs) and pro

This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment.  The report is due in Week 10, in needs to be at least 5 pages,

The personnel department of a firm is entrusted with the responsibility of recruitment, training and placement of the staff for the firm. The department is also required to critica

How do I do an introductory writing on this topic tto help. Include all salient issues?

How does the net present value relate to the value of the firm? The net present value (NPV) is the dollar amount of the change to the value of the organization if the project wit

Define Floating Rate Notes Floating-rate notes (FRNs) are commonly medium-term bonds along with their coupon payments indexed to some reference rate.  Common reference rates a

After the calculation of cash flow yield and the average life of the asset-backed and mortgage-backed security based on default, prepayment and recovery ass

Explain what will happen while the government imposes a minimum price that is below the market equilibrium price. Why is this true? The minimum price will comprise no impact on t

A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead