Need by Friday, would like it on Thursday if possible

As an assistant vice president at a regional bank, your boss has tasked you and the other AVPs to work in a group to acquire $100 million of residential mortgages to be securitized in a pass-through MBS. There must be between 250–300 mortgages in the portfolio, none of them with a maturity below 200 months or greater than 360 months. In the interest of time, your boss suggests that the group assign group members to find (meaning create some hypothetical) a group of diverse mortgages (meaning each with a different interest rate, principal amount, and maturity) and then as a group, aggregate each member’s mortgages into a pool to calculate the portfolio WAC and WAM. Your group’s task is to provide your boss with a summary spreadsheet that shows the individual mortgages and the portfolio’s WAC and WAM calculations, along with a memo of at least 300 words that explains the following:

  • The number of residential mortgages in the portfolio and the range of principal values, interest rates, and maturities
  • The residential mortgage portfolio’s WAC and WAM
  • A discussion of the WAC of the pass-through MBS the group has created and whether it represents a coupon rate indicative of a high credit quality or a lower credit quality pool of mortgages. Include in the discussion the MBS issue’s spread over the comparable Treasury rate.
  • Include in your analysis at least 1 outside source for the Treasury rate.
Brigham, Daves. Chapters 10-14.

 

Due Date:

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8/10/2014 11:59:59 PM (7 Days)

 

Total Pts:

200

 

Points Earned:

n/a

 

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Deliverable Length:

Spreadsheet, 300 words

 

Please submit your assignment.

 

Grading Criteria

Final Content Development: Demonstrates use of appropriate, relevant, and innovative content. All requirements of the assignment are met.

 

30%

Individual Contribution to Project: Demonstrates exchange of information with team by asking critical questions and giving answers to other students in discussions. Provides a substantial contribution to the group project.

30%

Research and Information Literacy: Demonstrates selection and use of high-quality, credible, and relevant sources to develop ideas that are appropriate to the assignment.

Sources are consistently cited according to required documentation.

20%

Grammar, punctuation, spelling and other mechanics of the English language: Demonstrates correct use of grammar, spelling, punctuation, and other mechanics of the English language.

20%

 

For assistance with your assignment, please use your text, Web resources, and all course materials

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