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Acknowledgments.
People who the author would like to thank for their assistance in the completion of the research titled "Understanding the Securitization of Subprime Mortgage Credit," are mentioned.
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Acknowledgments.
People whom the authors would like to thank for their assistance in the creation of the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" are mentioned.
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Appendix A: Predatory Lending.
A variety of graphs, forms, and aids concerning predatory lending that relate to the topics that appeared in the research titled "Understanding the Securitization of Subprime Mortgage Credit" are presented.
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Appendix B: Predatory Borrowing.
A variety of graphs, forms, and aids concerning predatory borrowing that relate to the topics that appeared in the research titled "Understanding the Securitization of Subprime Mortgage Credit" are presented.
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Appendix C: Some Estimates of PD by Rating.
A variety of graphs, forms, and several estimates of PD by rating that relate to the topics that appeared in the research titled "Understanding the Securitization of Subprime Mortgage Credit" are presented.
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Chapter 1: Introduction.
The article discusses various reports published within the issue including a broad description of the securitization process, in particular, the seven key frictions that needs to be resolved in these regard, and another which examines subprime mortgage-backed securities, discuss the key structural features of typical organization, and illustrate how it works with reference to the New Century securitization.
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Chapter 1: Introduction.
Chapter 1 of the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" is presented. It presents the survey that reviews research which is related to the financial analysts' role in allocating resources in capital markets and cites how the authors summarized the perspectives and directions for future research suggested in the book "Accounting Horizons" and "International Journal of Forecasting."
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Chapter 2: Overview of Subprime Mortgage Credit Securitization.
The article provides a broad description of the securitization process and discusses seven key frictions that needs to be resolved in these issues. It reports that several of these frictions involve moral hazard, adverse selection, and principal-agent problems. The article highlights how each of the friction is worked out, however, as evidenced by the recent problems in the subprime mortgage market, some of the solutions are imperfect.
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Chapter 2: Perspective From Schipper (1991) and Brown (1993).
Chapter 2 of the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" is presented. It highlights the commentaries of Katherine Schipper and R. G. Brown and cites how they indicated the significance of behavioral research in understanding the uses of accounting and other information in order to create more stock recommendations.
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Chapter 3: An Overview of Subprime Mortgage Credit.
The article provides an overview of subprime mortgage credit, focusing on the subprime borrower and the subprime loan. It discusses how predatory lending and predatory borrowing fit into the issues concerning subprime mortgage credit. It examines subprime loan performance within this pool and the industry, speculate on the impact of payment reset, and explore Asset Backed Securities Index (ABX) and the role it plays.
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Chapter 3: Selective Review of Research Related to the Role of Financial Analysts in Capital Markets.
Chapter 3 of the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" is presented. It features the selective review of research which is related to the significance of financial analysts in capital markets and cites the tasks of the analysts particularly in obtaining and developing information from various sources.
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Chapter 4: Overview of Subprime MBS.
The article examines subprime mortgage-backed securities, discuss the key structural features of typical securitization, and illustrate how it works with reference to the New Century securitization. It provides an overview of how rating agencies assign credit ratings on tranches of a securitization. An examination of the credit rating and rating monitoring process is also presented.
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Chapter 4: Summary and Conclusion.
Chapter 4 of the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" is presented. It mentions the summary and conclusion of the research concerning the significance of financial analysts in capital markets and the formidability of their task in discovering several information and valuation models that will determine prices of equity securities in capital markets.
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Chapter 5: An Overview of Subprime MBS Ratings.
The article highlights the differences between corporate and structured credit ratings, and the potential for pro-cyclical credit enhancement to amplify the housing cycle. It also documents the performance of subprime ratings. An overview of the process through which the credit rating agencies monitor performance of securitization deals over time, and review performance of credit ratings on securities secured by subprime mortgages is also presented.
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Chapter 6: The Reliance of Investors on Credit Ratings: A Case Study.
The article offers an analysis concerning the extent to which investors rely upon on credit rating agencies views. It also discusses the case of the Ohio Police and Fire Pension fund, providing an overview of the fund, fixed-income investment guidelines. It also discusses the Ohio Police and Fire Pension Fund with regards to its fund adequacy and portfolio composition.
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Chapter 7: Concluding Remarks.
The authors reflects on the role of credit rating agencies in resolving the frictions on the securitization of subprime mortgages. The authors comments that the rating of securities secured by subprime mortgage loans by credit rating agencies has been flawed. The authors suggests that it is important to understand that repairing the securitization process does not end with the rating agencies.
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Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research.
This surveys reviews research regarding the role of financial analysts in capital markets. The survey builds on the perspectives provided by Schipper (1991) and Brown (1993). We categorize papers published mainly since 1992 and selectively discuss aspects of these papers that address or suggest key research topics of ongoing interest in seven broad areas: analysts' decision processes, the determinants of analyst expertise and distributions of individual analysts' forecasts, the informativeness of analysts' research outputs, analyst and market efficiency with respect to information, effects of analysts' economic incentives on their research outputs, effects of the institutional and regulatory environment (including cross-country comparisons), and the limitations of databases and various research paradigms.ABSTRACT FROM AUTHORCopyright of Foundations &Trends in Finance is the property of Now Publishers and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.
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References.
The sources cited within this issue are presented including "The Pricing of Unexpected Credit Losses," by J. D. Amato and E. M. Remolona, "Ratings Migration and the Business Cycle, With Applications to Credit Portfolio Stress Testing," by A. Bangia, F. X. Diebold, A. Kronimus, C. Schagen, and T. Schuermann, and "Manipulation of Collateral Values by Borrowers and Intermediaries," by I. Ben-David.
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References.
References for the book "Financial Analysts' Forecasts and Stock Recommendations: A Review of the Research" are presented.
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Understanding the Securitization of Subprime Mortgage Credit.
In this survey we provide an overview of the subprime mortgage securitization process and the seven key informational frictions which arise. We discuss how market participants work to minimize these frictions and speculate on how this process broke down. We continue with a complete picture of the subprime borrower and the subprime loan, discussing both predatory borrowing and predatory lending. We present the key structural features of a typical subprime securitization, document how the rating agencies assign credit ratings to mortgage-backed securities, and outline how the agencies monitor the performance of mortgage pools over time. Throughout the survey, we draw upon the example of a mortgage pool securitized by New Century during 2006.ABSTRACT FROM AUTHORCopyright of Foundations &Trends in Finance is the property of Now Publishers and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.
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