Results for tag: "Mortgage Backed Security"

Mortgage-backed securities (MBS) are a type of asset-backed security that is secured by a mortgage or collection of mortgages. The mortgages are sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy. The mortgages of an MBS may be residential or commercial, depending on whether it is backed by residential or commercial loans. MBS are a type of fixed-income security that pays periodic payments to investors, based on the cash flow of the underlying mortgages. MBS are an important part of the global financial system, providing liquidity to the mortgage market and allowing investors to diversify their portfolios. They are also used by governments and central banks to manage interest rates and the money supply. Some companies in the MBS market include Fannie Mae, Freddie Mac, JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. Show Less Read more