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New York Institute of Finance

Mortgage Backed Securities (MBS)

New York Institute of Finance via edX Professional Certificate


Preview course content here for free! This preview course also offers an opportunity to earn an edX certificate for $49.

Taught by instructors with decades of experience on Wall Street, the Mortgage Backed Securities (MBS) Professional Certificate program is a fast paced, comprehensive yet detailed introduction to the U.S. mortgage-backed securities market.

The program covers the basics of terminology and features of individual mortgage contracts all the way through to the structure and investment characteristics of exotic instruments such as PAC bond tranches and reverse mortgage securitization.

Along the way, the program will address aspects of the MBS market ranging from the creation of the basic building blocks (mortgage origination and types of mortgages), the process of turning them into investment instruments (asset securitization) and how in certain instances the cash distributions are structured to create a variety of securities from a single collateral pool (types of tranches of Collateralized Mortgage Obligations – CMOs).

The majority of the program will focus on the largest segment of the market, agency (FNMA, FHLMC and GNMA) residential mortgage backed securities, both pass-through securities and CMOs. However, the other market sectors (agency multi-family, non-agency CMOs and commercial mortgage-backed securities – CMBS) will be addressed in some detail.

The coverage of each type of security will address: the most frequently encountered instrument in each category as well as common variations, the type of collateral that provide the cash flows for distribution to investors, and the structure of cash disbursements. The primary themes in the discussion of each security is the consequence of all those forgoing elements with respect to the primary types of risk investors face and the way in which those elements impact expected return.

Augmenting the discussion of the securities will be an introduction to the pricing conventions (including PSA and CPR speeds) and analytics (OAS analysis) as well as market-related issues such as TBA trading and dollar rolls.

NOTE: Completing all 2 parts and then taking the Professional Certificate Examination is MANDATORY to achieve both the NYIF Certificate of Mastery and the edX Professional Certificate in Mortgage Backed Securities. A verified learner must pass all courses in the program with a minimum grade of 70% to earn a Professional Certificate for Mortgages Backed Securities.


Courses under this program:
Course 1: Mortgage Backed Securities (MBS): Part I
Learn about the characteristics of U.S. mortgage-backed securities and various agencies within the market in this comprehensive overview.

Course 2: Mortgage Backed Securities (MBS): Professional Certificate Examination
Complete the required exam to earn your professional certificate in Mortgage Backed Securities from the New York Institute of Finance.

Course 3: Mortgage Backed Securities (MBS): Part II
Gain in-depth knowledge of the U.S. MBS market and learn about basic features of agency and non-agency CMOs as well as important types of tranches.

Taught by

Douglas Carroll


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