Questions tagged [mortgage-backed securities]

DaeguDivaDance Thu Oct 24 2024 | 7 answers 1677

I'm wondering if the Federal Reserve is still in possession of any mortgage-backed securities. Are they still holding these assets in their portfolio, or have they sold them off completely?

TimeRippleOcean Wed Sep 18 2024 | 7 answers 2072

Could you elaborate on the potential drawbacks of investing in mortgage-backed securities? Are there specific risks associated with them that investors should be aware of? For instance, how might fluctuations in the housing market or changes in interest rates impact the performance of these securities? Additionally, are there any concerns about the underlying quality of the mortgages that back these securities, and how could that affect investors?

mia_anderson_painter Wed Sep 18 2024 | 5 answers 1298

I'd like to inquire about the most significant risk involved in investing in mortgage-backed securities. Could you elaborate on what this risk entails, and how it might potentially impact an investor's portfolio? Understanding the nature of this risk is crucial for making informed decisions in the financial market.

Lorenzo Wed Sep 18 2024 | 6 answers 1387

Who exactly can we attribute the invention of mortgage-backed securities to? Was it a solitary genius who came up with the concept in a eureka moment, or was it a collaborative effort by a team of financial experts? And what motivated them to create such a complex financial instrument in the first place? Did they foresee the potential risks associated with it, or were they blinded by the prospect of generating significant returns? It's fascinating to ponder the origins of such a fundamental part of modern finance, and I'm eager to learn more about the individual or individuals who were responsible for its creation.

Sebastiano Tue Sep 17 2024 | 5 answers 1284

Could you elaborate on the reasons behind the failure of mortgage-backed securities? Were there specific factors that contributed to their downfall, such as flawed underwriting practices, inadequate risk assessment, or the overall economic climate? How did these issues interact and ultimately lead to the collapse of the housing market and the subsequent financial crisis? I'm particularly interested in understanding the root causes and the chain of events that led to this unfortunate outcome.