Reported 1 day ago
Mortgage-backed securities (MBS) are investment vehicles comprising pooled mortgages, providing returns to investors as homeowners repay their loans. There are various forms of MBS, including pass-through securities and collateralized mortgage obligations, each with its own risk and return profiles. While MBS offer a means of income generation and can diversify investment portfolios, they also come with risks such as prepayment and interest rate sensitivity. Agency MBS, backed by government entities, tend to carry lower risks compared to non-agency MBS, which lack such backing.
Source: YAHOO