BA 283- Real Estate Finance and Securitization

Course Description

This course considers the operation of the U.S. mortgage and structured finance markets. It applies basic tools of finance to the evaluation of mortgage, lease, and asset-backed contracts, the pricing of these contracts, and strategies to securitize both debt and real estate equity. The course exposes students to cases about current "real-world" real estate debt and equity deals and provides hands-on experience using modern option pricing tools for evaluating mortgage debt and equity based securities.

Basic principles of economics and finance will be used to motivate the analysis tools surveyed. The course begins with an overview of the structure of mortgage contracts and reviews the financial mathematics of mortgages including the calculation of various types of duration and convexity. These principles will be applied in the first major topic of the course: risk sharing in mortgage finance and leasing. In the second part of the course, we will consider mortgage and lease pricing including methods to price the options embedded in these contracts. The final section of the course will consider mortgage and asset-backed securitization, bond structures, and pricing.

Contact Us
Haas Real Estate Group or FCREUE:
Haas School of Business
University of California
Berkeley CA 94720-1900
Tel: (510) 643-6105
Fax: (510) 643-7357
Email: creue@haas.berkeley.edu