Securities that offer income from the payment of principal and interest on mortgages or other loans.
Securities issued based on the cash flow from the principal and interest provided by a pool of mortgages.
Bond-like securities which are backed by mortgages, usually on single-family houses. Some are also backed by GNMA.
Debt issues backed by a pool of mortgage loans. Investors receive payments from the interest and principal payments made on the underlying mortgages. These bonds are extremely interest-rate sensitive because home owners have a tendency to prepay and refinance their mortgages when interest rates decline.
Portfolios of mortgages assembled by a master service who collects monthly principal and interest payments on homeowner mortgages.
Investment certificates based on mortgages, like those issued by the Government National Mortgage Association (" Ginnie Mae") or the Federal Home Loan Mortgage Corporation (" Freddie Mac").
Housing loan assets held by banks are consigned to trust banks, which then sell them in small lots to investors as mortgage-backed securities. The scheme allows banks to use outstanding loans that will not come due for several decades to obtain cash with which to make more loans. In the U.S., government-affiliated financial institutions such as Fannie Mae (the Federal National Mortgage Association) purchase housing loans from private banks and sell securities backed by the loans to investors. Such activity accounts for more than 40% of total outstanding mortgage loans. The figure exceeds 50% when schemes involving private institutions are included. In Japan, however, mortgage-backed securities offered by both public and private institutions account for a mere 0.1% of total outstanding housing loans.
Bonds which are a general obligation of the issuing institution but are collateralized by a pool of mortgages.
In general, securities that are backed by pools of mortgage loans.
Debt instruments that are backed by a pool of mortgages. Mortgage-backed certificates issued by Fannie Mae, for example, are secured by conventional mortgages and guaranteed as to interest and principal.
Investment securities similar to bonds representing an interest in a pool of mortgages.
Sometimes referred to simply as mortgages. Pooled, securitised loans covered by properties. Thanks to their low risk exposure and returns on a par with government bonds, these securities are particularly well suited for diversification purposes. Mortgages typically have a high credit rating and high liquidity.
Bonds that are collateralized by a pool of mortgages.
Securities purchased by investors secured by mortgages. Also know as pass through securities since the debt service paid by the borrower is passed through to to purchaser.
Certificates backed by pooled mortgages (e.g., Freddie Mac or Ginnie Mae). Issuing agencies buy mortgages from lending institutions and repackage them as securities that they sell to investors. They are generally issued in denominations of $25,000 or above. Yields, which stem from interest and principal on underlying mortgages, are generally higher than those of Treasury bonds that provide comparable liquidity and safety. A growing number of income mutual funds concentrate their holdings in these securities.
Mortgage pools established by GNMA that act as collateral for the sale of pass-through securities.
A collection of mortgages bundled into a single security and retailed to private or institutional investors as a single security.
A type of bond that represents a large pool of individual mortgage loans. Investors receive monthly interest and principal concurrent with the payment of the loan by the borrower. Most mortgage loans are backed by an agency of the U.S. government.
Bonds backed by pools of mortgage loans whereby investors receive the cash flow generated by the pool as determined by their investment. See also: Federal National Mortgage Association; Government National Mortgage Corporation.
Fixed-income securities backed by pools of mortgage loans.
Securities similar to bonds, but having their value based on a pool of mortgages. The rate of return is based on the interest rate of the mortgages, plus early payoffs, which increases the value of any discounts. The price of the securities will vary as interest rates rise and fall.
Certificates that represent ownership in a pool of mortgages. The holders of these securities receive regular payments of principal and interest.
A debt instrument that has an ownership claim in a pool of mortgages or an obligation that is secured by such a pool.
Similar to bonds, the current $5,000 units with five-year terms are backed by a share in a pool of home mortgages insured under the National Housing Act. Units pay interest and a part of principal each month and, if homeowners pre-pay their mortgages, may pay out additional amounts of principal before normal maturity. They trade in the bond market at prices reflecting current interest rates.
Securities backed by a pool of mortgage loans.
Issues in which residential mortgages are packaged and sold to investors who receive payments from the interest and principal on the underlying mortgages. (See Ginnie Mae)
Securities representing an undivided interest in a pool of mortgages or trust deeds with similar characteristic. Payments on the underlying mortgages are used to make payments to the security holders. Mortgage-backed securities, such as those issued by the Federal National Mortgage Association, are secured by conventional mortgage and guaranteed as to interest and principal.
Securities or investments that represent an undivided interest in a pool of loans secured by mortgages or deeds of trust. Income from the underlying mortgages is used to pay off the bond or securities.
Securities issued by government-related agencies that buy up mortgage loans from lenders such as banks and savings and loan associations.
Investment grade securities backed by a pool of mortgages. The issuer uses the cash flow from mortgages to meet interest payments on the bonds.
An investment that gives you a share of a pool of home mortgages. Mortgage-backed securities pay monthly income, which is a combination of interest and a portion of the principal of the underlying mortgages.