The purpose of commercial mortgage backed securities is to take out loans using commercial mortgage properties as a form of collateral. You can learn more about this at the Wikipedia. Once on the website, type "Commercial mortgage backed security" into the search field at the top of the page and press enter to bring up the information.
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Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity. The entity then issues securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool, a process known as securitization.
30/360 - for corporate bonds, agency and municipal bonds, mortgage backed securities Actual/360 - for T-bills, commercial paper Actual/365 - US Treasury bonds
Freddie Mac is a government-sponsored corporation that buys home mortgages and sells them as mortgage-backed securities.
When the stock market drops it tends to help mortgage rates since investors tend to go towards Mortgage Backed Securities. However, as of now there is no direct correlation between the two.
The symbol for Vanguard Mortgage-Backed Securities ETF in NASDAQ is: VMBS.
As of July 2014, the market cap for Vanguard Mortgage-Backed Securities ETF (VMBS) is $429,844,000.00.
William W. Bartlett has written: 'To Fathoms in Hell and Back' 'Mortgage-backed securities' -- subject(s): Mortgage-backed securities
James M. Peaslee has written: 'Federal income taxation of mortgage backed securities' -- subject(s): Law and legislation, Mortgage-backed securities, Taxation, Taxation of bonds, securities
Lynn M. Edens has written: 'Mortgage securities research' -- subject(s): Mortgage-backed securities
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Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity. The entity then issues securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool, a process known as securitization.
30/360 - for corporate bonds, agency and municipal bonds, mortgage backed securities Actual/360 - for T-bills, commercial paper Actual/365 - US Treasury bonds
AIG's collapse was not due to insolvency but illiquidity. They had mortgage backed securities which derive their income from a pool of mortgages that had been securitized. The bailout came at a cost to AIG as the Treasury received warrants for approximately 80% of all shares. Thus, to some, the bailout was a nationalization of the company. See wikipedia on AIG and mortgage backed securities.
Freddie Mac is a government-sponsored corporation that buys home mortgages and sells them as mortgage-backed securities.
When the stock market drops it tends to help mortgage rates since investors tend to go towards Mortgage Backed Securities. However, as of now there is no direct correlation between the two.
No. Commercial paper is an unsecured obligation used by a corporation or bank to finance its short term credit needs. A mortgage is secured by real property.See link for a related topic- asset backed commercial paper.No. Commercial paper is an unsecured obligation used by a corporation or bank to finance its short term credit needs. A mortgage is secured by real property.See link for a related topic- asset backed commercial paper.No. Commercial paper is an unsecured obligation used by a corporation or bank to finance its short term credit needs. A mortgage is secured by real property.See link for a related topic- asset backed commercial paper.No. Commercial paper is an unsecured obligation used by a corporation or bank to finance its short term credit needs. A mortgage is secured by real property.See link for a related topic- asset backed commercial paper.