Price Fixing Risk Analyse In MBS And Price Fixing Model Building

Mortgage Securitization is a hot point into international financial innovation and anentrance into the development of residential finance in China. The question that how to value Mortgage-Backed Securities (MBS) has to be answered at the initial step of MBS market in our country. For MBS valuation, it is critical to forecast cash flows based on research into borrowers' prepayment models. Since theoretical and applied research on prepayment base on western countries are not applied to China, the dissertation is absorbed in Chinese consumers' character, and put forward a prepayment model, by which we can get average life of pools of mortgage. Further more, compared with several MBS valuation methods, the dissertation advances an approach for our own MBS valuation by improving "present value of cash flows' model". In order to correctly chooses the negotiablesecurities risk which can correctly reflect the discount rate, and uses this discount rate to compute investment income, theappraisal investment decision-making, this article introduces the CAPM model to analyses the price fixing of MBS .Through the analyzing to this models ,obtains model which suit our country for the development of MBS...