Title: Financial Institutions’ Funding for Mortgage Lending Purposes
Abstract: While the funding activities of financial institutions have always been vitally important, they have become even more important in recent years because of the strong growth in lending activity by banks and other institutions involved in the mortgage markets. This growth forced credit institutions to find the necessary funding, leading them to draw on new sources of funds and develop others that had only been marginal in the past. Some funding instruments that have become particularly significant are mortgage bonds, and, in particular, structured mortgage products such as mortgage-backed securities (MBS). Derivatives related to these mortgage funding instruments have also become very important, including collateralized debt obligations (CDO) and credit default swaps (CDS), among others. (This chapter includes concepts and data from Suârez and Vassallo, 2004.)
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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