Pricing Asset-backed Securities: A Revised Model

This paper deals with asset backed securities and the pricing thereof. First, an overview of debt markets is provided with a particular focus on the recent crisis in the sub prime markets. Second, literature surrounding securitization, asset backed securities and related types of debt is analysed an...

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Main Author: Bradka, Lukas
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Subjects:
Online Access:https://eprints.nottingham.ac.uk/22128/
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author Bradka, Lukas
author_facet Bradka, Lukas
author_sort Bradka, Lukas
building Nottingham Research Data Repository
collection Online Access
description This paper deals with asset backed securities and the pricing thereof. First, an overview of debt markets is provided with a particular focus on the recent crisis in the sub prime markets. Second, literature surrounding securitization, asset backed securities and related types of debt is analysed and discussed. A revised pricing model for asset backed securities based on two existing models (Ebrahim, 2000; Ebrahim & Ahmed, 2007) is successively developed and implemented in Maple programming language. This model assumes access to symmetric information and provides optimum pricing for securities backed by a deprecating asset while collateralising the loan with the underlying asset and the income of the borrower. Finally, a sensitivity analysis is performed on the model, the results are analysed and conclusions drawn. Further extensions to the model are suggested.
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spelling nottingham-221282017-12-31T13:43:08Z https://eprints.nottingham.ac.uk/22128/ Pricing Asset-backed Securities: A Revised Model Bradka, Lukas This paper deals with asset backed securities and the pricing thereof. First, an overview of debt markets is provided with a particular focus on the recent crisis in the sub prime markets. Second, literature surrounding securitization, asset backed securities and related types of debt is analysed and discussed. A revised pricing model for asset backed securities based on two existing models (Ebrahim, 2000; Ebrahim & Ahmed, 2007) is successively developed and implemented in Maple programming language. This model assumes access to symmetric information and provides optimum pricing for securities backed by a deprecating asset while collateralising the loan with the underlying asset and the income of the borrower. Finally, a sensitivity analysis is performed on the model, the results are analysed and conclusions drawn. Further extensions to the model are suggested. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22128/1/08MSclixlb9.pdf Bradka, Lukas (2008) Pricing Asset-backed Securities: A Revised Model. [Dissertation (University of Nottingham only)] (Unpublished) asset backed securities ABS
spellingShingle asset backed securities
ABS
Bradka, Lukas
Pricing Asset-backed Securities: A Revised Model
title Pricing Asset-backed Securities: A Revised Model
title_full Pricing Asset-backed Securities: A Revised Model
title_fullStr Pricing Asset-backed Securities: A Revised Model
title_full_unstemmed Pricing Asset-backed Securities: A Revised Model
title_short Pricing Asset-backed Securities: A Revised Model
title_sort pricing asset-backed securities: a revised model
topic asset backed securities
ABS
url https://eprints.nottingham.ac.uk/22128/