Mr. Dossani has over 20 years of diverse work experience as a former senior executive in the two major mortgage investment firms, Freddie Mac and Fannie Mae. He has been responsible for all aspects of portfolio management, including asset acquisition, funding, risk management, research and modeling for portfolios consisting of mortgages, mortgage-backed securities and liquidity assets. While at Freddie Mac, Mr. Dossani achieved superior returns on shareholder equity for a $650 billion dollar investment portfolio. He operated in a highly volatile interest rate environment keeping risk at very low levels while attaining a 20% annual return on equity. Realizing the importance of risk management, Mr. Dossani continually evolved Freddie Mac’s risk management system making it “leading edge” and with a reputation in the industry as “best in class”. He was responsible for all the risk management decisions, including rebalancing decisions to manage duration, convexity, vega and other risks.

Challenged to continually improve the investment process, Mr. Dossani directed the development of state-of-the-art prepayment models and interest rate processes to help measure risk and return statistics on a daily basis. These models were used to compute duration, convexity and other risk statistics daily. He also directed the increased use of derivatives for managing interest rate risk including duration and optionality risk for mortgage portfolios. This work resulted in the growth of options-based derivatives being used as an efficient tool to supplement the use of callable debt for managing the mortgage portfolio. Mr. Dossani was responsible for the management of an over $500 billion derivative portfolio, including the use of interest rate swaps, swaptions and futures contracts.

At Fannie Mae, Mr. Dossani directed the analytical decisions, as well as, the building of models and systems that supported the growth of the mortgage portfolio from $85 billion to over $150 billion with a significant improvement in risk management statistics. He pioneered the use of callable debt for managing optionality risk. This initiative led to the first agency issuance of callable debt in what is now a several hundred billion dollar market.

Mr. Dossani holds a Ph. D. in Regional Science from the University of Pennsylvania and a M.B.A. in Finance from the Wharton School at the University of Pennsylvania. He has been a Lecturer and Assistant Professor at the University of Pennsylvania and a Visiting Lecturer at George Mason University teaching courses in Modern Portfolio Theory and Mortgage-backed Securities Markets and Analytics.

If you’d like more information on this topic, please call Tracy Swensson at 703.342.0046 or e-mail Tracy at tswensson@primaticsfinancial.com.