Real Estate Financial and Investment Analysis 1 THE STANDARD INSTRUMENT AND THE NATURE OF THE PROBLEM: AN HISTORICAL PERSPECTIVE ASSET - LIABILITY MIX.

Slides:



Advertisements
Similar presentations
STRATEGIC ASSET ALLOCATION
Advertisements

Real Estate Investment Trusts – By Prof. Simply Simple A Real Estate Investment Trust or REIT is a company that owns and operates income-producing real.
Michelle McGregor Smith CEO British Airways Pension Investment Management Limited Challenges in Pension Asset Liability Management.
Principles of Economics Financial markets and Money supply Tomislav Herceg, PhD Faculty of Economics and Business Zagreb.
Residential Mortgage Loans
CHAPTER 9 MORTGAGE MARKETS. Copyright© 2003 John Wiley and Sons, Inc. The Unique Nature of Mortgage Markets Mortgage loans are secured by the pledge of.
CHAPTER TWELVE FINANCIAL LEVERAGE AND FINANCING ALTERNATIVES.
Financial Intermediaries Indirect Finance –An Institution stands between lender and borrower. Direct Finance –Borrowers and lenders deal directly with.
Chapter 1. Introduction financial assets financial markets derivatives markets financial assets financial markets derivatives markets.
Alternative/Traditional Investment Management Convergence Presentation to the Montreal Stock Exchange Canadian Annual Derivative Conference Yvan Fontaine,
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER12CHAPTER12 CHAPTER12CHAPTER12 Financial Leverage and Financing Alternatives.
Real Estate Financial and Investment Analysis 1 ELEMENTS OF REAL ESTATE PORTFOLIO ANALYSIS INDIVIDUAL REAL ESTATE INVESTMENTS VS. PORTFOLIO OF ASSETS TRADE-OFF.
Chapter 2: An Overview of the Financial System Classifying Financial Markets Financial Market Instruments Financial Intermediaries Regulation Classifying.
Tools & Techniques of Financial Planning Leimberg, Satinsky, Doyle & Jackson Financing Asset Acquisitions.
Financial Leverage and Financing Alternatives
MODULE 13. WRAP LOANS w What is a Wrap Loan? w Risk Analysis of Wraps w Examples of Wrap Loans.
Investing in Mutual Funds, Real Estate and Other Alternatives
Agenda Why is the Pension Investor different? The journey, the destination or both? Saver or Investor? Tailored Solutions Managing the journey to the destination.
Real Estate Investment Trusts – By Prof. Simply Simple A Real Estate Investment Trust or REIT is a company that owns and operates income-producing real.
Investing in Mutual Funds or Real Estate Chapter 14 Notes Mutual Funds  This is the most popular investment alternative out there! Here are the basics:
1 Chapter 5 Adjustable Rate Mortgages. 2 Overview Adjustable Rate Mortgages and Lender Considerations Interest Rate Risk of Constant Payment Mortgages.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER5CHAPTER5 CHAPTER5CHAPTER5 Adjustable Rate Mortgages.
© 2012 Cengage Learning. Residential Mortgage Lending: Principles and Practices, 6e Chapter 6 Conventional Lending.
Chapter 12: Financial Leverage and Financing Alternatives McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Residential Financial Analysis
CHAPTER 5 ADJUSTABLE RATE & VARIABLE PAYMENT MORTGAGES MORTGAGE LENDER’S DILEMMA (1970’s) MORTGAGE LENDER’S DILEMMA (1970’s) – RAPID INCREASES IN INFLATION.
Copyright © 2009–2011 National Academy Foundation. All rights reserved. AOF Principles of Finance Unit 3, Lesson 10 Investment Instruments.
Investment Basics Clench Fraud Trust Investment Workshop October 24, 2011 Jeff Frketich, CFA.
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved McGraw-Hill/Irwin Slide 1 CHAPTER TWELVE FINANCIAL LEVERAGE AND FINANCING ALTERNATIVES.
© South-Western Educational Publishing Chapter 14 Investing in Mutual Funds, Real Estate, and Other Choices  Investing in Mutual Funds  Investing in.
1 The Mortgage Market. 2 Introduction We have already noted real estate is capital intensive The typical capital structure is dominated by debt That is.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter Ten The Investment Function in Banking and Financial Services Management.
Role of Financial Management Objectives Liquidity Profitability Efficiency Growth Return on Investment Strategic role To provide and manage the financial.
INVESTMENT ANALYSIS & PORTFOLIO THEORY. Background Reasons for improvements in standards of living Major elements of businesses Human Capital Financial.
McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. CHAPTER 1 Investments - Background and Issues.
© South-Western Educational Publishing Chapter 14 Investing in Mutual Funds, Real Estate, and Other Choices  Investing in Mutual Funds  Investing in.
The Investment Function in Financial-Services Management
Caring For Those Who Serve Setting and Monitoring Financial Goals Presenter: Mark Conner August 16, 2010 Learning, Living & Leading Stewardship.
Ordinary shares. Ordinary shares represent ownership position as the shareholders are the legal owners of the company.
The Effects of Risk As we know, the cap rate relation is given by: R = NOI/V This relation is also the total return relation when an investor buys an income.
課程七 : Adjustable-rate Mortgages. Deficiencies of traditional fixed rate mortgage With high and variable inflation two problems are created: tilt problem.
Alternative Mortgage Instruments
 MORTGAGES WEEK 7. What is it?  Mortgage – The charging of real (or personal) property by a debtor, to a creditor as security for a debt (especially.
Mutual Fund Portfolio Strategies Agenda Investor’s dilemma… Why diversify? Asset allocation - Why does it matter? Asset allocation - How it works? Asset.
Making an investment decision. Value  Investment value: The value determined in view of investment objectives, goals and constraints.  Market value:
1 簡介 The Mortgage Market. 2 Introduction We have already noted real estate is capital intensive The typical capital structure is dominated by debt That.
Andrew Baum and David Hartzell, Global Property Investment, 2011 Real estate as an asset class Andrew Baum and David Hartzell, Global Property Investment,
Personal Finance Home Finance
Lecture 15 Commercial Financing.
REAL ESTATE INVESTMENT TRUSTS
Banking and the Management of Financial Institutions
Chapter 9 Banking and the Management of Financial Institutions
AOF Principles of Finance
Chapter 2 Learning Objectives
Financial Planning, Asset Allocation and Investment Decision Framework
Chapter Seven Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques Copyright © 2013 The McGraw-Hill Companies,
Private Money Lenders for Personal Loans
INTEREST RATE DERIVATIVE MARKETS
Lecture 5: Front-end Mortgages
Real Estate Investment Trusts – By Prof. Simply Simple
Banking and the Management of Financial Institutions
22 Investors and the Investment Process Bodie, Kane, and Marcus
Banking and the Management of Financial Institutions
CHAPTER NINE The Investment Function in Banking and Financial Services Management
Lecture 2 Chapter 2 Outline The Financing Decision
Chapter 9 Banking and the Management of Financial Institutions
22 Investors and the Investment Process Bodie, Kane, and Marcus
Chapter 5.4.
12th financial risk international forum Institut Louis Bachelier
Presentation transcript:

Real Estate Financial and Investment Analysis 1 THE STANDARD INSTRUMENT AND THE NATURE OF THE PROBLEM: AN HISTORICAL PERSPECTIVE ASSET - LIABILITY MIX PROBLEM RATE CEILING CONSTRAINTS USURY CEILINGS DE-REGULATION OF LIABILITIES AND ASSETS ACTIVITY OF OTHER FINANCIAL INTERMEDIARIES AND WALL STREET

Real Estate Financial and Investment Analysis 2 ALTERNATIVE MORTGAGE INSTRUMENT DESIGN INTEREST RATE RISK INFLATION / DEFLATION

Real Estate Financial and Investment Analysis 3 INSTRUMENT MODIFICATION TO REDUCE RISKS OF INTEREST RATE UNCERTAINTY PARTICIPATION IN EQUITY SHORTENING OF MATURITIES

Real Estate Financial and Investment Analysis 4 VRMs vs GPMs VRMs VARIABLE PAYMENT / FIXED TERM VARIABLE TERM / FIXED PAYMENT HYBRIDS RESTRICTED VS. UNRESTRICTED GPMs TOTAL BALLOON INTEREST ONLY PARTIAL PRINCIPLE PAYDOWN AMORTIZED LOAN GEM

Real Estate Financial and Investment Analysis 5 DESIGN OBJECTIVES TILT PROBLEM OF BORROWER RATE RISK OF LENDER LONG RUN “PAYMENT RISK” BURDEN TO BORROWER SHORT RUN “PROPERTY VALUE RISK” TO LENDER

Real Estate Financial and Investment Analysis 6 PROBLEMS INHERENT IN DESIGN OF MORTGAGES INDEX CHOICE AND REAL RETURNS SECONDARY MARKETABILITY

Real Estate Financial and Investment Analysis 7 RISK MANAGEMENT STRATEGIES HEDGING WITH FINANCIALS - FUTURES - OPTIONS BETTER DURATION MATCHING OF ASSETS AND LIABILITIES NO HOLD STRATEGIES - REMICs DIVERSIFICATION OF BUSINESSES RISK SHARING ALTERNATIVES THROUGH INSTRUMENT DESIGN

Real Estate Financial and Investment Analysis 8 RISK MANAGEMENT STRATEGIES REDUCE RISK SYNTHETIC ALTERNATIVES DEFENSIVE STRATEGYOFFENSIVE STRATEGY

Real Estate Financial and Investment Analysis 9 MODULE DEVELOPMENT TOOLS OF RISK MANAGEMENT PORTFOLIO BALANCE AND RISK-RETURN BALANCE DESIGN OF ALTERNATIVE MORTGAGE INSTRUMENTS HEDGING TECHNIQUES FOR “PIPELINE” ACTIVITIES LIQUIFICATION OF PORTFOLIO LIABILITY MANAGEMENT DIVERSIFICATION OF ASSETS

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.