Expert contributions
Autor: Nataša Kožul MSc, PhD
Summary: Mortgage Backed Securities are a class of asset backed securities, financial derivatives that link their value and their payout profile to a pool of residential or commercial properties. The number of available structures, as well as their uses, proliferated in recent decades. However, due to the recent world-wide financial crisis, the appropriateness of their use as an investment and hedging strategy has been brought into question. This paper presents an overview of mortgage markets and mortgage backed securities, their uses and applications. It critically assesses their impact onto the recent economic crisis and forecasts their use in the future with specific consideration of their applicability in Serbian housing market.