
MBS -- Mortgage-Backed Securities -- Definition & Example
Oct 1, 2019 · Mortgage-backed securities (MBS) are securities that represent an interest in a pool of mortgage loans.
CMO -- Collateralized Mortgage Obligation -- Definition & Example
Oct 1, 2019 · A collateralized mortgage obligation (CMO) is a fixed income security that uses mortgage-backed securities as collateral.
Commercial Mortgage-Backed Security (CMBS) - InvestingAnswers
Oct 1, 2019 · Unlike residential mortgage-backed securities, however, a CMBS does not present pre-payment risk to the holder, since commercial mortgage loans are set at a fixed term. …
Pass-Through Security Definition & Example | InvestingAnswers
Oct 1, 2019 · ABC Company in turn takes a fee and passes what's left of your principal and interest payment along to the investors who hold the mortgage-backed securities (ABC …
GNMA -- Ginnie Mae -- Definition & Example | InvestingAnswers
Sep 29, 2020 · Ginnie Mae is the nickname for the Government National Mortgage Association. Ginnie Mae guarantees the payment of various mortgage-backed securities…
Mortgage Real Estate Investment Trust (mREIT) - InvestingAnswers
Sep 29, 2020 · Mortgage real estate investment trusts (mREITs) invest in residential mortgages that have been bundled together into mortgage-backed securities (MBS).
Freddie Mac Meaning, Definition & Example | InvestingAnswers
Sep 29, 2020 · Freddie Mac is a government-sponsored entity that buys certain types of mortgages from banks and uses them to collateralize mortgage-backed securities.
NIMS -- Net Interest Margin Securities -- Definition & Example
Oct 1, 2019 · How Do Net Interest Margin Securities (NIMS) Work? When the homeowners make their mortgage payments, the proceeds make their way to the holders of mortgage-backed …
Prepayment Risk Definition & Example | InvestingAnswers
Sep 29, 2020 · People who invest in pass-through securities are also frequently concerned about prepayment risk. That's because those securities that receive payments from an intermediary …
Weighted Average Maturity (WAM) Definition & Example
Aug 21, 2020 · How Does Weighted Average Maturity Work? The WAM can be useful to investors in bond portfolios or in securities that are backed by debt securities, such as mortgage …