COURSE NUMBER: EWMBA283.1

This course is cross-listed with the FTMBA Program

COURSE TITLE: Real Estate Finance and Securitization

UNITS OF CREDIT: 3.0

INSTRUCTOR: Jiro Yoshida

E-MAIL ADDRESS: yoshida@haas.berkeley.edu

CLASS WEB PAGE LOCATION: https://bspace.berkeley.edu/portal

MEETING DAY(S)/TIME: Tuesdays, 6:00PM-9:30PM

PREREQUISITE(S): EWMBA203, EWMBA280

CLASS FORMAT: The class format will be a mixture of lectures and case discussions.

REQUIRED: Geltner, Miller, Clayton, and Eichholtz, Commercial Real Estate Analysis and Investments (3rd edition, 2013), ). OnCourse Learning. ISBN: 1133108822.

BASIS FOR FINAL GRADE: Midterm, Final, and Case write-ups.

ABSTRACT OF COURSE'S CONTENT AND OBJECTIVES : This is an applied finance and economics course that focuses on the structure and operation of the U.S. mortgage and asset-backed securities market. The course begins with an overview of the fundamentals of mortgage contracts such as FRM, ARM, and HEL and a review of basic bond analysis tools such as duration and convexity. The course then considers the fundamentals of residential and commercial real estate contracting and analyzes methods to design mortgages to manage risk. The course will then review recent advances in finance to price mortgage and contracts with embedded options such as prepayment, default, extension, and cancellation. The final part of the course considers the fundamental role of securitization and multi-trillion dollar mortgage and asset-backed bond markets. We will also discuss strategies to structure deals and methods to price bonds. The course will offer all students an opportunity to develop their sophisticated spreadsheet skills to analyze securities and options.

BIOGRAPHICAL SKETCH: Prof. Jiro Yoshida is Visiting Assistant Professor at the Haas School of Business. He is also Fellow at the Institute for Real Estate Studies and Assistant Professor of Business at the Pennsylvania State University, Senior Research Fellow at the Policy Research Institute of the Ministry of Finance of Japan, and Research Fellow at the Housing Research and Advancement Foundation of Japan. He was previously Assistant Professor at the Graduate School of Economics of the University of Tokyo and Assistant Research Specialist at Haas. Prof. Yoshida also has extensive business experience in banking, real estate, and public policy. He served as a consultant to Property and Portfolio Research, Senior Associate at Lehman Brothers, Deputy Director at the Development Bank of Japan, a founding director of the Japanese Association of Real Estate Financial Engineering, and a member of various committees of the Japanese government. Prof. Yoshida’s area of research includereal estate finance, asset pricing, corporate finance, and macroeconomics. He is a recipient of the dissertation award from American Real Estate and Urban Economics Association and Fulbright Scholarship. He has attended the University of Tokyo (B. Engineering), Massachusetts Institute of Technology (M.S.), and University of California, Berkeley (M.S. and Ph.D.).