Why might an interest rate derivative such as an interest rate swap or interest rate cap be

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Why might an interest rate derivative such as an interest rate swap or interest rate cap be used in a securitization transaction for residential mortgage loans?

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:35 AM

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Why would an interest rate derivative be using in a securitization structure?
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Why might an interest rate derivative such as an interest rate swap or interest rate cap be

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Securitization is the process of taking an illiquid asset orgroup of assets and through financial en...View the full answer

Bond Markets Analysis and Strategies

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