? __________________ Jeremy Moreland, PhD Date Dean, School of Advanced Studies University of Phoenix Abstract Begin Dedication Begin Acknowledgments Begin Table of Contents COLLATERALIZED MORTGAGE OBLIGATION VALUATION METHODS i COLLATERALIZED MORTGAGE OBLIGATION VALUATION METHODS iii Abstract iv Dedication v Acknowledgments vi Table of Contents vii List of Tables x List of Figures xi Chapter 1: Introduction 1 Background of the Problem 2 Statement of the Problem 3 Purpose of the Study 5 Significance of the Problem 6 Nature of the Study 8 Research Questions 10 Hypotheses 10 Theoretical Framework 11 Definition of Terms 14 Assumptions 14 Scope, Limitations, and Delimitations 15 Summary 15 Chapter 2: Review of the Literature 18 Historical Overview 18 Literature Review 27 Securitization and the Mortgage Market 31 The Evolution of Financial Exploitation 32 From the Margins of the City to the Core of Global Finance 33 Balanced Discussions and Alternative Viewpoints 34 Identified Research Gaps 35 Conclusion 38 Summary 40 Chapter 3: Method 1 Research Method and Design Appropriateness 1 Population, Sampling, and Data Collection Procedures and Rationale 4 Informed Consent, Confidentiality, and Geographic Location 5 Data Collection 5 Appropriateness, and Reliability and Validity of the Instruments 6 Internal Validity and External Validity 8 Data Analysis 8 Hypotheses 11 Description of Questionnaire Formulation 11 Findings of the Research (CMO Valuation Model) 13 Summary 13 14 References 14 Appendix A: Title 21 List of Tables List of Figures Chapter 1: Introduction The proposed quantitative descriptive research study involves the various valuation methodologies of prepayment speeds within collateralized mortgage obligation (CMO) tranches. The study involves analyzing how the prevalent valuation methods are useful in current complex economic scenarios. The objective of the proposed study is primarily to examine the applicability of various methods of valuation for pricing the CMOs so as to determine their validity in the present economic conditions. Collateralized mortgage obligations are derivative debt instruments that can be aptly defined as the claim that arises out of cash flows from large pools of home mortgages. The advantages of the CMO structure is that once mortgage holders receive principal and interest, the principal and interest is distributed to tranches. The principal amount, the coupon rate, the prepayment risk, and the maturity date differ among the tranches (Economy Watch, n. d.). Collateralized m
Credit risk management contains some key principles that are: a clear structure should be established, accountability and responsibility should be allocated, prioritize the processes, clear communication of assigned responsibilities and answerability assigned thereto.Credit risk management has an overwhelming concern on a bank.
The filing of bankruptcy by Lehman Brothers proved to be an unprecedented move which shook the financial industry worldwide. It was September 15, 2008, when Lehman Brothers ultimately filed for bankruptcy protection. It has been recorded to be one of the largest bankruptcy cases in the history of United States.
In some cases the losses incurred by the financial institutes are also the products of unethical behavior of the internal staff system of which a very recent example can be attributed to the subprime mortgage crisis which led to tremendous losses to several reputed banks in the United States of America and Europe.
This research study has been designed to discuss the possible reasons behind the filing for bankruptcy by Lehman Brothers in the year 2008, with a special reference to agency problems in the company that might have contributed to its collapse.
The findings of this research will provide insight of Tate & Lyle plc as one of the leading companies in the UK which provide the food, food ingredients and services solutions to other companies and businesses. Mainly Tate & Lyle plc operates under two segments; Specialty Food Ingredients and Bulk Ingredients. Both segments work independently.
Based on the descriptive statistical results, increasing the dividend payout does not necessarily mean that a telecommunication company is experiencing an increase in corporate profitability or an increase in corporate earnings. In fact, increasing the dividend payout could also decrease the corporate earnings.
Furthermore, due to globalization and industrialization, transactions involving foreign exchange have also risen dramatically over the years. This has given rise to increased incidences of risk encountered by commercial banks world-wide. Commercial banks today operate in a highly risky environment, which are encountered by them, on an almost daily basis, during the process of their routine banking activities.
Results and Findings 12 2.1 Lehman Brother 12 2.1.1 Lehman Brother before Bankruptcy 12 2.1.2 Bankruptcy of Lehman as a pointer of Subprime crisis 14 2.1.3 Effects of Bankruptcy of Lehman Brothers 16 2.2 Northern Rock 17 2.2.1 Pathway to Bankruptcy 18 2.2.2 Spill over effect of US sub-prime crisis on UK 19 2.2.3 The positive outcome 20 2.3 Housing Price Index 23 4.
30 Findings from Review of Literatures in a Broad Approach 33 Background and Recent Trends 33 Practices and Key Issues in CMO Processing 34 The Transformation of the US Banking and Mortgage Markets 37 Securitization and the Mortgage Market 37 The Evolution of Financial Exploitation 38 Balanced Discussions and Alternative Viewpoints 41 Identified Research Gaps 42 Conclusion of Review 44 Summary 46 Chapter 3: Research Methods and Design 50 Introduction 50 Research Method and Design Appropriateness 50 Appropriation of Research Design with the Study Concerned 52 Population, Sampling and Data Collection Procedures and Rationale 53 Appropriateness, Reliability and Validity of the Instruments Selec
Every corporation comprises of two different stakeholders – the shareholders and the managers – that normally face off with each other. The shareholders are interested in maximizing their wealth and hence tend to take higher risks in anticipation of higher gains whereas the managers tend to take lower risks to ensure lower managerial overheads.
60 pages (15000 words)Dissertation
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