Mortgage-backed securities

According The Reference material I uploaded.

The Question: Despite the criticism against mortgage-backed securities, MBSs provide real benefits to the mortgage market and to investors. Discuss its role in the growth of the mortgage market, and in portfolio management as a potential diversification tool.

Requirement: Instructions:

• Follow the formatting of this document: font size 12, 1.5 line space, “normal” margin.
• Answer to each question is about 1 full page long (or at least 1 page, but do not exceed that length too much). Answers that are too short will not get full credit. Bibliography, graphs, and tables are not counted toward main text. Include them at the end of each essay.
• Bullet points copied from lecture slides are not accepted; you need to expand and explain them in details. Please think carefully and write your answers in a clear and logical way. Also for most questions, you want to support your arguments using data
• Copying other people’s work is considered as plagiarism and will be penalized.

Format of external citations:

• Example for in-text journal publications: “Chevalier & Ellison (J. Finance, 1999) found that the funds whose managers attended colleges with higher-SAT scores performed better.” You do not need to provide the full citation of this paper.
• Example for citing online articles: “In 2014, 85% of active large-cap stock funds failed to beat or match their benchmark index[1].”
• No need to cite the lecture slides.