Financial Market Theory

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Presentation transcript:

Financial Market Theory Tuesday, November 7, 2017 Professor Edwin T Burton

Further Issues in Asset-Backed Review of ABS essentials Different forms of ABS CBO –where the pool consists of bonds CDO –where the pool consists of debt CLO – where the pool consists of bank loans CMBS – where the pool consists of commercial real estate loans Use of credit enhancements Implications for the 2008 financial crisis Transparency issues Use of independence assumption November 7, 2017

Review for 2nd Mid-Term All lectures from September 12th through October 19th Readings: Chapters 7 through 13 in ‘textbook’ Power point presentations from September 12th through October 19th Primary emphasis: Modern Portfolio Theory Markowitz, Tobin and CAPM Applications of CAPM Finite State Theory Lectures after October 19th will not be included on the exam. Chapters after chapter 13 will not be included. Power point presentations after October 19th will not be included on the exam. These materials will be covered on the final exam. November 7, 2017