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Mortgage Backed Securities. Exactly what are mortgage backed securities?

Mortgage Backed Securities. Exactly what are mortgage backed securities?

Mortgage-backed securities could be a proper option for relationship investors looking for a month-to-month cashflow, greater yields than Treasuries, generally speaking high credit scores, and diversification that is geographic.

Mortgage-backed securities, also called mortgage-backed bonds, are collateralized by mortgages, which are generally domestic mortgages. They’re developed by pooling mortgages bought through the lenders that are original.

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