Adverse Loan Selection and the True TBA Market

Westhoff, Dale; Kramer, Bruce
September 2000
Securitization Conduit;2000, Vol. 3 Issue 3/4, p64
Discusses adverse loan selection and the true TBA market. Fundamental problems that TBA investors face when assessing the prepayment risk of TBA pools; Background on the trust IO market; Tools to address concerns about monitoring and valuing the effects of adverse prepayment selection in the TBA market.


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