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Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

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Old 05-30-2017, 06:43 PM
A-L A-L is offline
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Default mortgage backed security

can someone give me a for dummies explanation of what exactly a mortgage backed security actually is ?
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Old 05-30-2017, 07:52 PM
nonlnear nonlnear is offline
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It is a bond backed by a claim on some tranche of revenue from a bundle of mortgages.
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Old 05-31-2017, 12:18 AM
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bitter buffalo bitter buffalo is offline
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mortgage payments from a bunch of mortgages are pooled together ("securitized") and passed through to investors (hence the name "pass-through security") according to some schedule, sort of like you'd see for a regular bond.
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Old 05-31-2017, 07:02 AM
A-L A-L is offline
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thanks guys.
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