In this Mahoney Money Minute, Belmont Savings President and CEO Bob Mahoney recommends the Rule of 100 when trying to determine whether it is worth using airline miles accumulated through the use of one's credit card. The Rules of 100 works this way: divide the number of airline miles by 100. Every 100 miles should represent . If that number is lower than the price you would pay for your travel, use the miles. Otherwise, better to say them for another trip! Hope that is helpful! Any information found on the "Mahoney Money Minute" is meant to be used for informational purposes only. The information provided should be taken at face value. We offer no guarantee that any information offered will work for you. Personal finance is something that varies by individual depending on your financial goals. When in doubt, we always recommend seeking advice from a licensed professional. From time to time, we may refer to information from other sources. We are in no way responsible for any information or misinformation these sources may provide. We will always work to promote content that is in the best interest of our visitors, but do not guarantee any results from this information.

Financial Theory (ECON 251) Professor Geanakoplos explains how, as a mathematical economist, he became interested in the practical world of mortgage securities, and how he became the Head of Fixed Income Securities at Kidder Peabody, and then one of six founding partners of Ellington Capital Management. During that time Kidder Peabody became the biggest issuer of collateralized mortgage obligations, and Ellington became the biggest mortgage hedge fund. He describes securitization and trenching of mortgage pools, the role of investment banks and hedge funds, and the evolution of the prime and subprime mortgage markets. He also discusses agent based models of prepayments in the mortgage market. 00:00 – Chapter 1. Fannie Mae, Freddie Mac, and the Mortgage Securities Market 17:01 – Chapter 2. Collateralized Mortgage Obligations 22:44 – Chapter 3. Modeling Prepayment Tendencies at Kidder Peabody 35:40 – Chapter 4. The Rise of Ellington Capital Management and the Role of Hedge Funds 52:52 – Chapter 5. The Leverage Cycle and the Subprime Mortgage Market 01:13:51 – Chapter 6. The Credit Default Swap 01:18:36 – Chapter 7. Conclusion Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Fall 2010.