Mortgages and Mortgage-backed Securities (FRM Part 1 2023 - Book 3 - Chapter 21)

[@Silvertestrun]

Ty

[@Ekskwkwkwkw2309]

Thanks professor

[@analystprep]

You are welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@harshchhabra14]

Thanks a lot Professor!

[@analystprep]

You are welcome! If you like our video lessons, it would be helpful to spread the word if you could leave us a review here: www.trustpilot.com/review/analystprep.com

[@NatureGirl62]

You have a wonderful way of presenting this material. I worked on the sell side for eight years and have worked on the buy side for 23 [I happen to be your age :-) ] and have been looking for something to provide to young colleagues rather than handing them a 600-page Fabozzi book. This is perfect! Thanks very much for posting. I look forward to exploring more of your material!

[@analystprep]

You're welcome. We also do have ressources for entreprises. You can send us an email here: analystprep.com/partnerships/

[@nabilamasood4403]

Excellent content. Thank you very much.

[@analystprep]

Glad you enjoyed it!

[@Tennis-3582]

A new subscriber, great content thanks a lot professor

[@analystprep]

Welcome aboard!

[@yvesprimeau6031]

merci beaucoup

[@readerwilliam]

I reviewed all the videos for FRM Part 1 twice already and progressing toward my third times at the moment. Going to get that FRM Part 1 in my bag.

[@analystprep]

Great work! Don't forget to practice using a question bank so that you can internalize every concept!

[@ashutoshmishra9143]

Professor, Your contents are great. Please keep up the good work. I am not sure why this has so less views but I can bet with your simplistic way of teaching this thing is about to get viral in a few months.

[@analystprep]

Thank you! We started this channel only a few months ago, so we'll be getting more views and subscriptions in the next couple of years for sure.

[@GavinBull1]

how do you enter the calculation in blue box at 10:13 on a calculator? i can't get $2,590.96

[@nishichoudhary1376]

Sir, Sonia and sofr are going to replace Libor

[@manueljarabaonetrust9002]

I have to buy a financial calculator for this exam, which one you recommend? thanks in advance

[@analystprep]

Hi Manuel. We would recommend the Texas Instruments BA II Plus Financial Calculator as it is the easier to get used to. We hope this helps!

[@Mmayank2010]

The prepayment option creates Negative Convexity for the price-yield curve in the cast of a mortgage pass-through. Sir kindly explain this In a vanilla bond, dollar duration accelerates as the interest rate increases; i.e., becomes less negative as the yield increases, or equivalently (moving “right-to-left”) becomes more negative as the yield decreases. The introduction of the call option introduces negative convexity but not negative duration: at low yields, as the yield DECREASES, the slope of the tangent line (dollar duration) starts to flatten but remains negative. In mathematical terms, the rate of change (second derivative) of the slope shifts from positive to negative (negative convexity) but the slope remains negative (positive duration).

[@moonkhaskheli1065]

Simply... investment is recovered earlier with neg. convexity

[@moonkhaskheli1065]

Conexity is maturity squared when you say it is negative naturally it means maturity is decreasing