Purpose – Interest only strips are created by stripping the interest portion of cash flows generated in mortgage-backed securities or simply by servicing portfolios of mortgages. A number of financial institutions have significant amounts of mortgage-servicing rights (MSR) which need to be...

We discuss how the Registered Traveler (RT) program can enhance simultaneously aviation security and passenger convenience. We point out some of the potential weaknesses in the program from both a security and civil liberty perspective. The RT program is a public-private partnership between the...

Purpose – The purpose of this paper is to present an innovative model that helps create a portfolio of m-fixed-income securities, each with the optimal weight, in order for the portfolio to be d- and ?-hedged against small changes in interest rates. Re-balancing a portfolio on a periodic basis...

The model the authors present solves for the value of an incremental change in the mortgage contract given an expectation about the time the mortgage will be outstanding and a required return for this time span. The marginal value participants in the primary mortgage market place on the contract...