This text provides a practical analysis of the typical investments and funding sources of depository institutions. With a particular emphasis on mortgage-related investments (ARMs, CMOs, IOs and POs), valuation models are included that incorporate both call and default risk.
J. AUSTIN MURPHY is an Associate Professor of Finance at Oakland University. He worked as a research scholar at the Federal Home Loan Bank Board in its final year before it was merged into the Treasury Department (1988-89) and at the Free University of Berlin in its final year before being merged into the Germany (1989-90). He has written over 40 academic articles that have been published in such journals as the Journal of Banking and Finance, Journal of Economics and Business, Journal of Futures Markets, Southern Economic Journal, the Financial Review, and the American Business Review.