Pricing Based On The Risk Of Housing Mortgage Loan Securitization (mbs)

The theory of MBS has been introduced into China for some years, but there's no practice on MBS. The main reason is that the principle of law on MBS is nearly vain. Legal experts have been discussing such questions. And many economists have answered the concept, function, classification, organization, participants, etc, on MBS, but ignoring the theory of pricing on MBS in China. The thesis establishes some pricing models to make up for the ignorance.The thesis has two main sections, one summarizing the various risks on MBS. The value of any security is equal to the Net Present Value (NPV) of its future cash flow, and it's uncertain to know the exact quantity of its future cash flow, that's to say, there're risks in the security. So the description of various risks is the premise for the pricing of MBS. The other one introduces the pricing model of MBS. China doesn't make the practice of MBS, but it's necessary for us to learn the pricing principles of MBS. Chapter3 and conclusion point that China should make use of the easy but not accurate pricing methods, such as the Pricing Model of Rate of Maturity to evaluate the price of MBS at the beginning of MBS at the beginning of the MBS.