Mortgage Bond Definition & Example - InvestingAnswers
2020年10月16日 · For example, suppose bond ABC is backed by a mortgage on property XYZ. If bond ABC goes into default, the holders of the bond may liquidate property XYZ as …
Collateralized Mortgage Obligation (CMO) - InvestingAnswers
2019年10月1日 · A collateralized mortgage obligation (CMO) is a fixed income security that uses mortgage-backed securities as collateral. Like other structured securities, CMOs are …
MBS -- Mortgage-Backed Securities -- Definition & Example
2019年10月1日 · The Government National Mortgage Association (GNMA, or ' Ginnie Mae '), on the other hand, is a governmental entity that does not purchase mortgages but does …
Commercial Mortgage-Backed Security (CMBS) - InvestingAnswers
2019年10月1日 · Unlike a residential mortgage-backed security (RMBS), a CMBS offers reduced pre-payment risk, since the term on commercial mortgages is generally fixed. Investors who …
Debentures Definition & Example | InvestingAnswers
2020年8月11日 · How do Debentures work? Let's consider a $100 million bond issue by Company XYZ. If Company XYZ is willing to pledge $100 million of its assets to the …
Indenture Agreement Definition & Example - InvestingAnswers
2021年3月16日 · What is a Bond Indenture Agreement? An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms …
Junior Mortgage Definition & Example - InvestingAnswers
2021年5月18日 · A junior mortgage is a loan secured by the equity in a house. Equity equals the value of the house less the balance owed on the homeowner's first (or in some cases, …
Negative Convexity Definition & Example - InvestingAnswers
2019年10月1日 · Most mortgage bonds are negatively convex, largely because they can be prepaid. Callable bonds can also exhibit negative convexity at certain prices and yields. This is …
Putable Bond Definition & Example - InvestingAnswers
2019年10月1日 · Second, put provisions limit a bond's potential price depreciation, because when interest rates rise, the price of a putable bond will not go any lower than its put price. …
Dwarf Definition & Example - InvestingAnswers
2019年10月1日 · For investors, an MBS is much like a bond, and dwarves are relatively short-term bonds in this sense However, it is important to note that payments that are part interest …