International mortgage backed securities, Financial Management

International mortgage-backed securities are the mortgage-backed securities that are issued in a country by a non-domestic entity. With limited size of the Indian Mortgage-backed securities, leading housing finance companies and banks engaged in home finance are looking at the option of tapping the overseas mortgage-backed securities. A comparison between the US and Indian market shows that more than 46 percent of housing loans in the US are securitized, against three percent in India. Access to overseas investors offers cheaper and diversified funding. It also provides larger size funds for longer maturity periods. Large housing finance majors in India have indicated their desire to target international investors in the United States and the United Kingdom. But unless domestic originators of MBS provide adequate data and follow best practices, they will find it difficult to tap international investors. Domestic housing majors eyeing the international MBS market will also need to look into regulations like foreign direct investment and how they need to hedge the funds received in dollars when the same is brought back into the country.

Posted Date: 9/8/2012 8:18:40 AM | Location : United States







Related Discussions:- International mortgage backed securities, Assignment Help, Ask Question on International mortgage backed securities, Get Answer, Expert's Help, International mortgage backed securities Discussions

Write discussion on International mortgage backed securities
Your posts are moderated
Related Questions
How competitive is the market for banking services? A: With above 7,000 banks and thrifts in the U.S., banking is one of the so many competitive industries in the world. Refer

Operational Rules for Financial Management Besides features, certain operational rules are established as to the subsequent: 1) While revenue and expenses are reported;

Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a

What to do to maximise profits of the company If you want to maximise profits, there are only two methods to do it. Either you decrease your expenses (also known as costs) or y

Effective Duration and Convexity The modified duration is a measure of the sensitivity of a bond's price to interest rate changes; the assumption made here is that the expected


A firm's operating and financing decisions   Risk also results from decisions made within the company.  This risk is usually divided into two classes:  - Business risk is th

Suppose, you are working as an investment consultant in a consultancy firm and most of your clients are habitual investors, who are maintaining their own portfolios comprising of v

Q. Cost of Holding Inventories? The holding of inventories engages blocking of a firm's funds. The various risks as well as costs in holding inventories are as below: (1) Ca

HOW TO CALCULATE ASSESSED BANK FINANCE