This application models the creation of repackaged pools of Mortgage Backed Securities (MBS). As an MBS ages, the underlying mortgages in the pool get paid down and/or are removed from the pool due to default or refinancing. As the pool of loans shrinks, the removal of subsequent loans from the pool has a greater effect on the whole. Rolling multiple aged MBS into one larger one can substantially reduce the risk of the security. Leveraging DAML, this solution allows the transfer of securities to happen simultaneously — eliminating the counterparty risk from the transaction.
- Simulate the repackaging of a pool of mortgage backed securities
- Complete the transfer and archiving of the underlying collateral, the issuance of the new security, and the transfer of the new security in an atomic action