3 credits
Spring 2025 Lecture Upper Division
The course covers debt and equity secondary markets linked to real estate assets. Main topics include features of commercial and residential mortgages, and mortgage calculation; analysis of agency and non-agency mortgage-backed securities and other instruments; history of mortgage secondary markets; commercial mortgage-based securities (CMBS), and Real Estate Investment Trusts (REITs). The advantages and drawbacks of the capital market products will be discussed and compared, and students develop a deep understanding of the alternatives that are available. The class consists of lectures, guest speakers, readings, class discussions, and case studies.
Learning Outcomes1Demonstrate a deep understanding of the history and composition of both debt and equity components of real estate capital markets.
2Understand the main drivers of real estate capital flows and capital pricing.
3Describe the structure of residential and commercial mortgage-backed securities.
4Perform a comprehensive valuation of a REIT.
5Structure the capitalization for a given project type.
Prerequisites
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Attachments
made by Purdue students.