This chapter in The Handbook of Mortgage-Backed Securities explains:

• the primary types of derivatives that reference mortgage-backed securities; 
• how credit default swaps for mortgage-backed securities differ from corporate credit default swaps; 
• how derivatives allow for the creation of synthetic collateralized debt obligations; 
• the role credit derivatives can play when hedging mortgage-backed securities; 
• the impact of the credit crisis on the market for credit derivatives on mortgage-backed securities; and
• recent regulatory changes affecting the credit derivatives and mortgage-backed securities markets.