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Case Study: Mortgage Trading Analysis in Power BI

Nick Edwards

Capital Markets Analyst at Mynd

lenders selling loans in the capital markets

The U.S. mortgage market

Column chart of mortgage debt compared to gdp of united states

pie graph of mortgage debt compared to all other debt of united states households

¹ https://www.newyorkfed.org/microeconomics/hhdc

a group of document icons with the text Mortgage pool at the bottom

a mortgage pool with some document icons circled at random

a group of document icons with the text Mortgage pool at the bottom

a mortgage pool being grouped into a mortgage-backed security

a mortgage pool being grouped into 3 different securitizations

a mortgage pool being grouped into a mortgage-backed security and some documents have been crossed out

a mortgage pool being grouped into a uniform mortgage-backed security with Fannie Mae and Freddie Mac and some documents have been crossed out

Trade price is expressed as the percentage of the bond's principal balance
Trade amount is the total dollar amount paid for the loan
- [Trade Price] x [Principal Balance]
Trade premium is the difference between the principal balance and the trade amount
- [Trade Amount] - [Principal Balance]
Example:
- A trade price of 101.00 on $100,000 would have a trade amount of $101,000 and a trade premium of $1,000

Image of an investor viewing prices on a monitor.

Case Study: Mortgage Trading Analysis in Power BI