Abstract
Mortgage-backed securities (MBSs), or pass-through securities, are instruments backed by ‘pools’ of mortgages, which pay a periodic (generally monthly) coupon of interest and principal. In essence, MBSs represent the securitised and tradeable form of residential and commercial mortgages. The most commonly traded MBSs are based on mortgages packaged by loan originators and guaranteed by one of three US Government agencies: the Government National Mortgage Association (GNMA or Ginnie Mae), the Federal National Mortgage Association (FNMA or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac).
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© 1993 Erik Banks
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Banks, E. (1993). Mortgage-backed Securities and Associated Derivatives. In: The Credit Risk of Financial Instruments. Finance and Capital Markets Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13247-8_9
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DOI: https://doi.org/10.1007/978-1-349-13247-8_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-13249-2
Online ISBN: 978-1-349-13247-8
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