Securitization: Structuring and Investment Analysis

It was perfect

I am a junior jeep driver (aka, junior ABS trader) at one of the major IB firms. I needed a book that explains securitization and how to analyze securitized products. This book is the best choice in this arena if you want to learn HOW to analyze MBS and ABS.What this book doesn't do: This book is not an encyclopedia. It does not contain every type of securitized product in the world. If you are interested in the encyclopedia approach, there are better choices.What this book does do: If you decide to read the book carefully, you will learn how to analyze securitized products. The strength of the book is mortgage-backed security analysis (both residential and commercial). It does an excellent job at describing the underlying collateral and how the underlying collateral influences the performance of the security.Our firm has its own prepayment and delinquency models, but we use the Andrew Davidson company prepayment models in conjunction with Derivative Solutions. It is nice to have a book that explains mortgage prepayments by the firm that actually generates the prepayment models that we use. Also, it is great to understand the interplay between prepayments and interest rate processes.A problem that I have with the book is that I got it a couple of weeks ago and everyone keeps borrowing it. I recommend that the publisher issue a softbound version at a lower price point so my fellow traders will be encouraged to buy their own copies.

I was somewhat stunned by the above review. I too have worked in the field for about 15 years and find that this book is far superior to the Salomon Bros book mentioned (although I like it too). This book actually enables the reader to learn valuation concepts in MBS and ABS and provides numerous examples. Furthermore, the book provides exercises and answers (as well as a CD) to help the interested reader understand the subject matter.Most books in the area of MBS and ABS are collections of nonintegrated writings (such as by Fabozzi). This book provides a book that flows as a book should flow. I have ordered copies for each of the traders in my group since I believe it to be the best teaching aid for this subject.The international chapters could be improved somewhat, but I am positive that any shortcomings will be corrected in a subsequent edition. But the chapters still contain valuable information about international markets that are important to people entering this area.In summary, this is an excellent book for those wishing to learn about securitization and the valuation of securitized products such as MBS and ABS. Keep up the good work!

As an attorney working in the area of securitization, I am always on the prowl for a good treatise on mortgage-backed and asset-backed securities. A friend at another law firm recommended this book for our growing library on the topic. I am sufficiently pleased with this book that I ordered another three copies for the other partners working in this area at my firm.This book represents an excellent companion to other books on securitization such as "Salomon Smith Barney Guide to Mortgage-Backed and Asset-Backed Securities" by Lakhbir Hayre (an edited book) and "A Primer on Securitization" by Leon Kendall and Michael Fishman (also an edited book). All three books are important additions to a firm's collection, but the Davidson et al book stands out as an excellent teaching tool.One of the more difficult tasks facing a law firm is trying to acquaint the various partners and staff with the complexities of this field. This book enables interested parties to understand these complex issues through the use of illustrations and exercises.I highly recommend this book to anyone in the legal profession interested in a better understanding of this complex but fascinating area.

This book is terrible for the quant who wants to learn some technical stuff about MBS and ABS (for example, prepayment model or default model ....). I know the authors are doing business to sell their prepayment model. But I don't think that's the good reason that this book contains nothing more than MBS/ABS overview. If you want market/product overview, maybe this book is the answer.

The title of Davidson's work certainly doesn't lack in aspiration, however, it proves the point that appearances are deceptive! It's disappointing in comprehensive coverage, bar maybe it's narrow scope on MBS. Worse though, statistics and contents are largely outdated. Even though I found a few rare pages worthy of reading, I still can't recommend this book to anyone. There are many superior alternatives in the market.

For players in securitization who need to know more about structured finance including new securitized markets, this book is a great resource!