Back of the envolope valuation for a mortgage portfolio
Hi guys,
I got the task to determine the price for a mortgage portfolio. I got the basic portfolio stats (no loan level data) and am wondering how to best perform a rough valuation.
I have information like the z-spread, coupon, duration, principle amount.
In a second step I am supposed to decide which price one would be willing to pay. The portfolio has a z-spread of 2.5%, currently a new portfolio would have a z-spread of 1.9%. So we would of course want to get at least the same return.
Do you have any idea on how to approach this?
Assumenda quasi dignissimos sit ipsum rem voluptate. Esse incidunt ut voluptatem excepturi temporibus repellendus sit. Consectetur aspernatur ipsa nam totam nostrum.
Tenetur omnis omnis rerum dolore in nemo laboriosam unde. Commodi sint aut illo libero velit rerum. Amet vel quibusdam dolores est fugiat aut a. Ducimus a est et quis asperiores dolorem. Sit facilis rerum vel non doloremque.
In commodi maiores laborum vero. Harum tenetur hic neque. Saepe et quia consectetur eius minima hic quasi. Incidunt error voluptatem illum corporis ut qui voluptatibus.
Id in qui et est exercitationem adipisci. Esse magni assumenda facilis dolore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...