Mortgage Part VII - What about Mortgage Derivatives?

Mortgage Part VII – What about Mortgage Derivatives?

By The Banker | Blog Posts, Wall Street

Please see my earlier post, on the creation of a Mortgage bond which reviewed 3 parts of the mortgage bond market. “When Issued” forward-trading of mortgage origination supply The packaging of homeowner loans into plain vanilla mortgage bonds The role of mortgage servicers and mortgage insurers in the bond market This post will cover subsequent [&hellip

Ask an Ex-Banker: How to Invest Unexpected Cash

Ask an Ex-Banker: How to Invest Unexpected Cash

By The Banker | Ask an Ex-Banker, Blog Posts, Personal Finance

A friend asked me recently for investment advice.  I sent her my thoughts by email but couldn’t resist making it into an “Ask an Ex-Banker” post. Question:  My daughter got caught in the housing downturn and finally has sold her condo in NY but is too poor in this economy to buy a bag of [&hellip

Mortgages Part VI - On Wall Street

Mortgages Part VI – On Wall Street

By The Banker | Blog Posts, Wall Street

How do mortgages make it to Wall Street anyway? None of the following is essential to understanding mortgages from a personal finance standpoint, I just thought the details of mortgage securitization and mortgage bond trading and structuring would be interesting for some people.     I sold mortgage bonds at Goldman for a few years [&hellip

Video: TEDTalk on Global Corruption

Video: TEDTalk on Global Corruption

By The Banker | Audio Posts, Video

Follow the money! It’s not just “those corrupt folks” over there, it’s often “these corrupt folks” over here as well.   Post read (2258) times

Mortgages Part V - Good Debt? Dangerous Drug? Or Both?

Mortgages Part V – Good Debt? Dangerous Drug? Or Both?

By The Banker | Blog Posts, Personal Finance

Is mortgage debt good debt? A dangerous drug? Or both? All debt acts like a drug. Debt artificially changes your personal financial metabolism, accelerating personal consumption, and exaggerating investment losses and gains.  Like any pharmaceutical, debt can be life-saving.  Without debt, you might have to wait an additional 10 years before you’ve saved up enough [&hellip