Mcconnell, 1981, "Valuation of
GNMA Mortgage-Backed Securities", Journal of Finance, 36:599-616
As the ratio of the (nominal) callable and non-callable default-free rates, we take the ratio of the
GNMA 30-year yield to the ten-year T-note yield; this is to match durations.
The empirical results indicate that the price-process model is more consistent with
GNMA market prices.
Pensiero said
GNMA never included pagination E the Journal would "maintain our old model of off-site composition." With the end of the decade in sight, "the feeling was, the rest of the world has caught up and passed what we were trying to do," he said.
These funds also invest in government agencies -- e.g.,
GNMA, the Government National Mortgage Association -- which have implied guarantees.
We retain four other bond fund categories: government bond, corporate bond, Government National Mortgage Association (
GNMA) bond, and high yield bond.
Consider the fate of the first interest rate futures contract, the
GNMA (Government National Mortgage Association) CDR (Collateralized Depositary Receipt) contract.
Securitization was developed by a government agency, the Government National Mortgage Association (
GNMA or Ginnie Mae).
According to AAER #181, during the period 1983-85 the controller of a Federally insured savings and loan association incorrectly accrued interest on mortgage-backed securities issued or guaranteed by the Federal National Mortgage Association (FNMA), the Government National Mortgage Association (
GNMA), and the Federal Home Loan Mortgage Association (FHLMC).
One alternative involves placing the money into AAA-rated insured bonds producing tax-exempt interest of 7%, while the other alternative is the purchase of
GNMA bonds producing taxable interest of 9.5 %.