Rosalan Ali

A Comparative Analysis of Conventional and Shari’ah for Residential Mortgage-backed Securities☆

The underlying objective of the study is to testify that Shari’ah residential Mortgage Backed Security (MBS) performs better than conventional issued by Cagamas with the equal issuance year, rating grades and maturity period. As a preliminary case study of Cagamas, the comparative financial performance for both Shari’ah and conventional MBS is measured by key financial ratios in terms of profitability, capitalization and debt coverage for one year before, during the year and one year after its each issuance, and key performance indicators. Interestingly, the initiation of Shariah MBS has demonstrated cheaper financing costs to Cagamas as an originator and much better investment returns to investors. Therefore, the findings support past studies on benefits of conventional asset securitization and interestingly verifying that Shari’ah MBS performs better than its conventional MBS for equal originator, rating and tenure.

Developing Primary Market Spread and Measuring Financial Performance of Staff Housing Government Loans

This research aims to examine the determinants of primary market spread and measure financial performance of Cagamas as its case study. Ordinary least square method and regression analysis are applied for the study period of 2004–2012. The result shows that three determinants influence or contribute to the primary market spread that are statistically significant for Cagamas, and its financial performance shows that it is resilient during 2007–2008 US subprime crisis. In fact, Cagamas shows rising profits and dividends in the period of study. As such, this study testifies the success of Cagamas as an intermediary between long-term investors and lenders in the Malaysian mortgage market.

Pre and post subprime mortgage crisis: An empirical analysis in Malaysia

In view of the vast developments that have occurred in financial markets since the introduction of the asset securitization in 1986, it recognizes the importance of developing a comprehensive capital framework for asset securitization, including both traditional forms and synthetic forms of securitization. This research aims to examine the determinant primary market spread. Least square method and regression analysis are applied for the study period 2004–2012. The result shows one determinants in internal regression model influence or contribute to the primary market spread and are statistically significant in developing the securitization in Malaysia. It can be concluded that maturity significantly contribute to the determinant primary market spread in internal regression model and debt and crisis significant in external regression model.