In reference to globalization pull in general, Roger Cohen wrote in an editorial opinion in New York Times on March 17, 2008 that "Never before have U.S. fortunes been so tied to the world's. Americans see that. When your mortgage is packaged into some ingenious security that's sold to a German bank before the scheme unravels and you lose your house, the globe looks smaller." Discuss the notion of 'packaging' a mortgage-backed security. What process is involved and what is the nature of the cash flows arising? (10 p.)