1. Could you elaborate on the intricate dynamics of mortgage-backed securities (MBS) markets, including the securitization process, credit enhancement mechanisms, and the role of structured finance instruments in allocating credit risk across diverse investor classes amidst changing economic conditions and regulatory landscapes ?

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Mortgagebacked securities MBS are a type of assetbacked security that is composed of a pool of mortgage loans These securities allow lenders to convert longterm fixedrate mortgage loans into more liqu... View the full answer