-
Mortgage-Backed Securities (MBS) Explained in One Minute: Did We Learn Our Lesson?
Mortgage-Backed Securities (or MBS, to use the abbreviated version) have been made famous or rather infamous by the Great Recession, which they have caused to a significant degree.
But what are these Mortgage-Backed Securities anyway and why should you care about them in 2020 and beyond?
As recent price action among many asset classes made clear, we are currently living in challenging times and as such, perhaps it wouldn't be the worst idea in the word to allocate a minute (heh) to learning from the financial follies of the past.
This video will hopefully enable you to do just that, since it explains what Mortgage-Backed Securities are all about and why they are so dangerous to begin with.
Please note that times have changed and that history doesn't necessarily have to repeat itsel...
published: 12 Mar 2020
-
Mortgage-backed securities I | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-i
Part I of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-ii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance...
published: 31 Aug 2007
-
What are Mortgage-Backed Securities? (2008 Financial Crisis Explained)
Make getting into college easier with the Checklist Program: https://bit.ly/2AYauMn
If you've lived through the 2008 and 2009 financial crisis or if you've been paying attention to the news recently, you likely have heard the term "mortgage-backed security." You likely know that it is loosely related to mortgages, but also, isn't directly a mortgage.
The rest, tends to get a little bit complicated in financial jargon. Mortgage-backed securities, or MBS, and the market that surrounds them are a major underpinning to the US economy, so it's important to understand them if you want to understand greater economic actions. Let's explain this market simply, in common terms so everyone can understand.
Get a free stock with WeBull: https://bit.ly/2tBxZYv
Get a free stock with Robinhood: http:/...
published: 13 Apr 2020
-
Mortgage-backed securities II | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-ii
Part II of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-iii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance ...
published: 31 Aug 2007
-
Mortgage-backed security overview | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview
Basics of how a mortgage back security works. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/interpretting-futures-fair-value-in-the-premarket?utm_source=YT&utm_medium=Desc&utm_campaign=financeandc...
published: 20 Jul 2011
-
What is a Mortgage Backed Security (MBS)?
An overview of the financial product Mortgage Backed Security (MBS). Describes the traditional model of mortgage lending, and how that changed with the introduction of the MBS. I also provide a brief overview of what Securitization is, and how MBSes played into the 2008 crash.
This is the first in a series of explainers on basic financial products.
published: 16 Apr 2012
-
Mortgage-Backed Securities Are Evolving
Mortgage-Backed Securities safeguards and risk management tools have experienced a major evolution. How do today's MBS deliver transparency and minimization of counterparty risk? Presented by @cmegroup: https://www.cmegroup.com/openmarkets/quicktake-by-bloomberg.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=more_insight
--------
Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm
Subscribe to Bloomberg Originals: https://www.youtube.com/BloombergTV
Bloomberg Quicktake brings you global social video spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.
Connect with us on…
YouTube: https://www.youtube.com/user/Bloomberg
Breaking News on YouTube: https://www.youtube.com/@Bloo...
published: 13 Oct 2023
-
Mortgage Backed Securities, Explained.
"Mortgage Backed Securities... What is that?!?"
Hey Taxpayers, Tiffany Gonzalez CPA is here with a great installment of "What is that?!?" Where we bring you financial terms and topics you may have heard, but we make them super easy to understand.
Today we are talking about Mortgage Backed Securities, also called MBS, which is a bond that is secured by home and other real estate loans. These securities are issued by government entities such as Fannie Mae and Freddie Mac.
If you are looking for safe investments this might be of interest to you. We are going to explain how they work and why they are considered to be safe.
Tiffany will also explain what happened in the 2008 Housing Crisis and what has changed to make sure that does not happen again!
So if you are looking into new invest...
published: 14 Sep 2022
-
Tranches & Mortgage Backed Securities Explained
“Know Your Numbers” Crash Course: https://learn.realestatefinanceacademy.com/finance-prerequisite
For COURSES & COACHING, visit https://www.realestatefinanceacademy.com
For COMMERCIAL LOANS, visit https://www.evergreen.llc
---
Understand Mortgage-Backed Securities
[00:00:00] Debt Funds and Loan Pools
I find outside investors to invest their money into this fund and then I go out and loan it. So I've got a hundred million dollars worth of loans out there that are all paying somewhere between 8% and 10%.
I had one investor that was my seed investor. He's the guy that helped me start the fund and he invested $50 million. And then I've got 20 other investors that each invested $2.5 million.
[00:01:36] Tranches
The biggest investor, he wants to be paid first. We have two tranches So ...
published: 13 Jul 2022
-
Casual Economics: Mortgage-backed Securities
You've probable heard a lot about Mortgage-backed Securities, but how do they actually work? Find out in this episode of Casual Economics.
published: 06 Nov 2017
1:49
Mortgage-Backed Securities (MBS) Explained in One Minute: Did We Learn Our Lesson?
Mortgage-Backed Securities (or MBS, to use the abbreviated version) have been made famous or rather infamous by the Great Recession, which they have caused to a...
Mortgage-Backed Securities (or MBS, to use the abbreviated version) have been made famous or rather infamous by the Great Recession, which they have caused to a significant degree.
But what are these Mortgage-Backed Securities anyway and why should you care about them in 2020 and beyond?
As recent price action among many asset classes made clear, we are currently living in challenging times and as such, perhaps it wouldn't be the worst idea in the word to allocate a minute (heh) to learning from the financial follies of the past.
This video will hopefully enable you to do just that, since it explains what Mortgage-Backed Securities are all about and why they are so dangerous to begin with.
Please note that times have changed and that history doesn't necessarily have to repeat itself. However, it oftentimes does tend to rhyme and those who meaningfully understand the MBS phenomenon will without a doubt easily find common denominators when comparing the Great Recession to future calamities.
Enlightenment can start with a one minute explanation, believe it or not :)
https://wn.com/Mortgage_Backed_Securities_(Mbs)_Explained_In_One_Minute_Did_We_Learn_Our_Lesson
Mortgage-Backed Securities (or MBS, to use the abbreviated version) have been made famous or rather infamous by the Great Recession, which they have caused to a significant degree.
But what are these Mortgage-Backed Securities anyway and why should you care about them in 2020 and beyond?
As recent price action among many asset classes made clear, we are currently living in challenging times and as such, perhaps it wouldn't be the worst idea in the word to allocate a minute (heh) to learning from the financial follies of the past.
This video will hopefully enable you to do just that, since it explains what Mortgage-Backed Securities are all about and why they are so dangerous to begin with.
Please note that times have changed and that history doesn't necessarily have to repeat itself. However, it oftentimes does tend to rhyme and those who meaningfully understand the MBS phenomenon will without a doubt easily find common denominators when comparing the Great Recession to future calamities.
Enlightenment can start with a one minute explanation, believe it or not :)
- published: 12 Mar 2020
- views: 155794
7:57
Mortgage-backed securities I | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-financ...
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-i
Part I of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-ii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Mortgage_Backed_Securities_I_|_Finance_Capital_Markets_|_Khan_Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-i
Part I of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-ii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
- published: 31 Aug 2007
- views: 676026
20:29
What are Mortgage-Backed Securities? (2008 Financial Crisis Explained)
Make getting into college easier with the Checklist Program: https://bit.ly/2AYauMn
If you've lived through the 2008 and 2009 financial crisis or if you've bee...
Make getting into college easier with the Checklist Program: https://bit.ly/2AYauMn
If you've lived through the 2008 and 2009 financial crisis or if you've been paying attention to the news recently, you likely have heard the term "mortgage-backed security." You likely know that it is loosely related to mortgages, but also, isn't directly a mortgage.
The rest, tends to get a little bit complicated in financial jargon. Mortgage-backed securities, or MBS, and the market that surrounds them are a major underpinning to the US economy, so it's important to understand them if you want to understand greater economic actions. Let's explain this market simply, in common terms so everyone can understand.
Get a free stock with WeBull: https://bit.ly/2tBxZYv
Get a free stock with Robinhood: http://bit.ly/2p4kQC2
All images and videos courtesy of the creative commons or used in accordance with fair use laws. For questions or concerns, please use the contact section on our channel
https://wn.com/What_Are_Mortgage_Backed_Securities_(2008_Financial_Crisis_Explained)
Make getting into college easier with the Checklist Program: https://bit.ly/2AYauMn
If you've lived through the 2008 and 2009 financial crisis or if you've been paying attention to the news recently, you likely have heard the term "mortgage-backed security." You likely know that it is loosely related to mortgages, but also, isn't directly a mortgage.
The rest, tends to get a little bit complicated in financial jargon. Mortgage-backed securities, or MBS, and the market that surrounds them are a major underpinning to the US economy, so it's important to understand them if you want to understand greater economic actions. Let's explain this market simply, in common terms so everyone can understand.
Get a free stock with WeBull: https://bit.ly/2tBxZYv
Get a free stock with Robinhood: http://bit.ly/2p4kQC2
All images and videos courtesy of the creative commons or used in accordance with fair use laws. For questions or concerns, please use the contact section on our channel
- published: 13 Apr 2020
- views: 161606
9:35
Mortgage-backed securities II | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance...
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-ii
Part II of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-iii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Mortgage_Backed_Securities_Ii_|_Finance_Capital_Markets_|_Khan_Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now:
https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/mortgage-backed-securities-ii
Part II of the introduction to mortgage-backed securities. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-iii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
- published: 31 Aug 2007
- views: 425298
2:03
Mortgage-backed security overview | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/...
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview
Basics of how a mortgage back security works. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/interpretting-futures-fair-value-in-the-premarket?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Mortgage_Backed_Security_Overview_|_Finance_Capital_Markets_|_Khan_Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview
Basics of how a mortgage back security works. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/interpretting-futures-fair-value-in-the-premarket?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
- published: 20 Jul 2011
- views: 97264
9:28
What is a Mortgage Backed Security (MBS)?
An overview of the financial product Mortgage Backed Security (MBS). Describes the traditional model of mortgage lending, and how that changed with the introduc...
An overview of the financial product Mortgage Backed Security (MBS). Describes the traditional model of mortgage lending, and how that changed with the introduction of the MBS. I also provide a brief overview of what Securitization is, and how MBSes played into the 2008 crash.
This is the first in a series of explainers on basic financial products.
https://wn.com/What_Is_A_Mortgage_Backed_Security_(Mbs)
An overview of the financial product Mortgage Backed Security (MBS). Describes the traditional model of mortgage lending, and how that changed with the introduction of the MBS. I also provide a brief overview of what Securitization is, and how MBSes played into the 2008 crash.
This is the first in a series of explainers on basic financial products.
- published: 16 Apr 2012
- views: 91062
1:24
Mortgage-Backed Securities Are Evolving
Mortgage-Backed Securities safeguards and risk management tools have experienced a major evolution. How do today's MBS deliver transparency and minimization of ...
Mortgage-Backed Securities safeguards and risk management tools have experienced a major evolution. How do today's MBS deliver transparency and minimization of counterparty risk? Presented by @cmegroup: https://www.cmegroup.com/openmarkets/quicktake-by-bloomberg.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=more_insight
--------
Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm
Subscribe to Bloomberg Originals: https://www.youtube.com/BloombergTV
Bloomberg Quicktake brings you global social video spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.
Connect with us on…
YouTube: https://www.youtube.com/user/Bloomberg
Breaking News on YouTube: https://www.youtube.com/@BloombergQuicktakeNow
Twitter: https://twitter.com/quicktake
Facebook: https://www.facebook.com/quicktake
Instagram: https://www.instagram.com/quicktake
https://wn.com/Mortgage_Backed_Securities_Are_Evolving
Mortgage-Backed Securities safeguards and risk management tools have experienced a major evolution. How do today's MBS deliver transparency and minimization of counterparty risk? Presented by @cmegroup: https://www.cmegroup.com/openmarkets/quicktake-by-bloomberg.html?utm_source=youtube&utm_medium=paid_social&utm_campaign=quicktake_evergreen&utm_content=more_insight
--------
Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm
Subscribe to Bloomberg Originals: https://www.youtube.com/BloombergTV
Bloomberg Quicktake brings you global social video spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.
Connect with us on…
YouTube: https://www.youtube.com/user/Bloomberg
Breaking News on YouTube: https://www.youtube.com/@BloombergQuicktakeNow
Twitter: https://twitter.com/quicktake
Facebook: https://www.facebook.com/quicktake
Instagram: https://www.instagram.com/quicktake
- published: 13 Oct 2023
- views: 2653
3:20
Mortgage Backed Securities, Explained.
"Mortgage Backed Securities... What is that?!?"
Hey Taxpayers, Tiffany Gonzalez CPA is here with a great installment of "What is that?!?" Where we bring you fi...
"Mortgage Backed Securities... What is that?!?"
Hey Taxpayers, Tiffany Gonzalez CPA is here with a great installment of "What is that?!?" Where we bring you financial terms and topics you may have heard, but we make them super easy to understand.
Today we are talking about Mortgage Backed Securities, also called MBS, which is a bond that is secured by home and other real estate loans. These securities are issued by government entities such as Fannie Mae and Freddie Mac.
If you are looking for safe investments this might be of interest to you. We are going to explain how they work and why they are considered to be safe.
Tiffany will also explain what happened in the 2008 Housing Crisis and what has changed to make sure that does not happen again!
So if you are looking into new investment vehicles and want a safe one, this video is for you!
Tune in and get your financial I.Q. up!
Accounting to Scale is dedicated to the betterment of the community through financial education. Please leave any topics you wish to learn about or feel should be talked about in the comments below.
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https://wn.com/Mortgage_Backed_Securities,_Explained.
"Mortgage Backed Securities... What is that?!?"
Hey Taxpayers, Tiffany Gonzalez CPA is here with a great installment of "What is that?!?" Where we bring you financial terms and topics you may have heard, but we make them super easy to understand.
Today we are talking about Mortgage Backed Securities, also called MBS, which is a bond that is secured by home and other real estate loans. These securities are issued by government entities such as Fannie Mae and Freddie Mac.
If you are looking for safe investments this might be of interest to you. We are going to explain how they work and why they are considered to be safe.
Tiffany will also explain what happened in the 2008 Housing Crisis and what has changed to make sure that does not happen again!
So if you are looking into new investment vehicles and want a safe one, this video is for you!
Tune in and get your financial I.Q. up!
Accounting to Scale is dedicated to the betterment of the community through financial education. Please leave any topics you wish to learn about or feel should be talked about in the comments below.
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Contact us:
☎ 305.503.2814
🖥www.accountingtoscale.com
Info@accountingtoscale.com
Disclaimers & Disclosure:
This content is for education and entertainment purposes only. Tiffany Gonzalez CPA and Accounting to Scale are not providing Tax or Investment advice. The information is being presented without consideration of the financial circumstances of the taxpayer/investor, financial objectives or risk tolerance and may not be suitable for all taxpayers/investors. We don't make any guarantees or promises as to results that may be obtained using our content. All investing involves risk, including risk of losing investment principal.
#MiamiAccounting #miami #Smallbusinessmiami #MiamiCPA #MiamiAccountant #MiamiBookkeeper #MiamiBookkeeping #SouthFlorida #CPAMiami #BookkeeperMiami #BookkeepingMiami #accounting #business #accountant #finance #tax #bookkeeping #taxes #smallbusiness #cpa #entrepreneur #payroll #taxseason #accountants #accountingservices #money #businessowner #incometax #audit #accountingsoftware #taxconsultant #marketing #startup #management #bookkeeper #motivation #accountinglife #taxreturn #charteredaccountant #ca #quickbooks #taxplanning #success #taxation #software #financialfreedom #education #taxrefund #bookkeepingservices #taxprofessional #accountantlife #smallbusinessowner #accountingstudent #accountancy #consulting #cryptocurrency #Bitcoin #crypto #retirement #Lifeinsurance #financialplanning #retirementplanning #401k #Roth401k #roth #SEP #SEPIRA #taxtips #commerce #irs #retirement #retirementplanning #financialfreedom #investment #money #insurance #financialplanning #investing #lifeinsurance #realestate #finance #wealth #family #savings #financialadvisor #personalfinance #retirementgoals #entrepreneur #business #invest #retirementcommunity #retired #financialliteracy #health #investments
- published: 14 Sep 2022
- views: 2068
10:24
Tranches & Mortgage Backed Securities Explained
“Know Your Numbers” Crash Course: https://learn.realestatefinanceacademy.com/finance-prerequisite
For COURSES & COACHING, visit https://www.realestatefinanceaca...
“Know Your Numbers” Crash Course: https://learn.realestatefinanceacademy.com/finance-prerequisite
For COURSES & COACHING, visit https://www.realestatefinanceacademy.com
For COMMERCIAL LOANS, visit https://www.evergreen.llc
---
Understand Mortgage-Backed Securities
[00:00:00] Debt Funds and Loan Pools
I find outside investors to invest their money into this fund and then I go out and loan it. So I've got a hundred million dollars worth of loans out there that are all paying somewhere between 8% and 10%.
I had one investor that was my seed investor. He's the guy that helped me start the fund and he invested $50 million. And then I've got 20 other investors that each invested $2.5 million.
[00:01:36] Tranches
The biggest investor, he wants to be paid first. We have two tranches So we're making 8.25% on our money. And the first three and a half percent goes to Mr. Morgan, who bought all of Tranch A and Tranch B, they're getting 4%.
Whatever's left over is called the "Residual". And we keep that.
We're basically making the spread. Our cost of funds was seven and a half from our investors. We originated a pool of loans at eight and a quarter. We get to keep the difference.
[00:03:26] Mortgage-Backed Securities (MBS)
Let's say the teacher's pension fund just put out an announcement that they want a billion dollars worth of investments and they need to make at least 3%. And so what'll happen is another pool of loans is a giant pool of like a thousand loans in, it has 10 slices of funds just like mine.
And what I created here when I sold these tranches is called a Mortgage-backed security, asset backed security it just means a pool of loans that's backed by something.
[00:04:57] Changes in Ratings Agencies Leading Up to '08
Right around the early 2000's, Standard & Poor's and Moody's, who were the two primary ratings agencies, they both went public. They used to be privately held family companies and they both went public.
What happens when you go public? Now you have investors. You've got outside stakeholders. You've got shareholders that are demanding you get a higher return.
Moody's and standard Poor's they get paid basis points based on the size of the investment. So a rating for a larger investment, they can charge a higher fee.
They would start competing. And what started happening behind the scenes is the guys at Moody's were like, "Let us rate that next bond that you issue. We have an incentive, because if we get this, pool, we get a bonus. Maybe instead of reading that a BBB, we'll just rate it in a AA or whatever."
There became a conflict of interest. Because now they were more profit motivated than they were objective.
And so over time, more and more often, what you would see is these bonds that were made up of all these loans that were often made up of tranches, started getting AAA ratings.
The loans that we were selling to Lehman brothers that were all subprime loans, were going into mortgage-backed securities, that were eventually getting AAA ratings.
[00:07:33] Credit Default Swaps
Now, this is where it gets really crazy. You've heard of derivatives, right? Credit Default Swaps?
If I was an investor and I bought this thing here, this pool of tranches that's clearly more risky than AAA. (This is the AAA tranch.)
They would sell me insurance called a Credit Default Swap that says, "Hey, if this thing defaults, you can swap it out for this insurance policy."
So if I'm like, "Oh, I can buy a tranch that pays, let's say four and a half instead of three and a half rated AAA. And for just a few more basis points, I can buy insurance. Why not?"
Once derivatives started coming into play, it was like putting everybody on steroids and money just started flowing in to the bond market, these mortgage-backed securities.
But the quality of these pools, these bonds was getting lower and lower, but they were still getting AAA ratings.
So you had conflicts everywhere.
[00:09:15] The Crash of '08
Eventually, the whole thing came crashing down. Because once this one defaulted, then the guys that held this insurance policy, they got screwed because they had to pay the investor. $80 billion pool just defaulted. The investor says, "Hey, I got a credit default swap, pay me my $80 billion."
And so suddenly these guys are out $80 billion and a pool that they can't get rid of because it's made up of all these defaulted borrowers.
#finance #financetraining #TrevorCalton #securities #securitiesfinance #tranches #mortgagebanker #EvergreenLLC #stepbystep #stepbysteptutorial #diagram #example #download #freedownload #howto
CRE loan
investing in real estate
investment properties and commercial real estate
commercial real estate lending
commercial real estate loan
SBA commercial real estate loan
commercial real estate financing
commercial property loan
commercial building loan
real estate lending
best commercial real estate loans
commercial property lending
https://wn.com/Tranches_Mortgage_Backed_Securities_Explained
“Know Your Numbers” Crash Course: https://learn.realestatefinanceacademy.com/finance-prerequisite
For COURSES & COACHING, visit https://www.realestatefinanceacademy.com
For COMMERCIAL LOANS, visit https://www.evergreen.llc
---
Understand Mortgage-Backed Securities
[00:00:00] Debt Funds and Loan Pools
I find outside investors to invest their money into this fund and then I go out and loan it. So I've got a hundred million dollars worth of loans out there that are all paying somewhere between 8% and 10%.
I had one investor that was my seed investor. He's the guy that helped me start the fund and he invested $50 million. And then I've got 20 other investors that each invested $2.5 million.
[00:01:36] Tranches
The biggest investor, he wants to be paid first. We have two tranches So we're making 8.25% on our money. And the first three and a half percent goes to Mr. Morgan, who bought all of Tranch A and Tranch B, they're getting 4%.
Whatever's left over is called the "Residual". And we keep that.
We're basically making the spread. Our cost of funds was seven and a half from our investors. We originated a pool of loans at eight and a quarter. We get to keep the difference.
[00:03:26] Mortgage-Backed Securities (MBS)
Let's say the teacher's pension fund just put out an announcement that they want a billion dollars worth of investments and they need to make at least 3%. And so what'll happen is another pool of loans is a giant pool of like a thousand loans in, it has 10 slices of funds just like mine.
And what I created here when I sold these tranches is called a Mortgage-backed security, asset backed security it just means a pool of loans that's backed by something.
[00:04:57] Changes in Ratings Agencies Leading Up to '08
Right around the early 2000's, Standard & Poor's and Moody's, who were the two primary ratings agencies, they both went public. They used to be privately held family companies and they both went public.
What happens when you go public? Now you have investors. You've got outside stakeholders. You've got shareholders that are demanding you get a higher return.
Moody's and standard Poor's they get paid basis points based on the size of the investment. So a rating for a larger investment, they can charge a higher fee.
They would start competing. And what started happening behind the scenes is the guys at Moody's were like, "Let us rate that next bond that you issue. We have an incentive, because if we get this, pool, we get a bonus. Maybe instead of reading that a BBB, we'll just rate it in a AA or whatever."
There became a conflict of interest. Because now they were more profit motivated than they were objective.
And so over time, more and more often, what you would see is these bonds that were made up of all these loans that were often made up of tranches, started getting AAA ratings.
The loans that we were selling to Lehman brothers that were all subprime loans, were going into mortgage-backed securities, that were eventually getting AAA ratings.
[00:07:33] Credit Default Swaps
Now, this is where it gets really crazy. You've heard of derivatives, right? Credit Default Swaps?
If I was an investor and I bought this thing here, this pool of tranches that's clearly more risky than AAA. (This is the AAA tranch.)
They would sell me insurance called a Credit Default Swap that says, "Hey, if this thing defaults, you can swap it out for this insurance policy."
So if I'm like, "Oh, I can buy a tranch that pays, let's say four and a half instead of three and a half rated AAA. And for just a few more basis points, I can buy insurance. Why not?"
Once derivatives started coming into play, it was like putting everybody on steroids and money just started flowing in to the bond market, these mortgage-backed securities.
But the quality of these pools, these bonds was getting lower and lower, but they were still getting AAA ratings.
So you had conflicts everywhere.
[00:09:15] The Crash of '08
Eventually, the whole thing came crashing down. Because once this one defaulted, then the guys that held this insurance policy, they got screwed because they had to pay the investor. $80 billion pool just defaulted. The investor says, "Hey, I got a credit default swap, pay me my $80 billion."
And so suddenly these guys are out $80 billion and a pool that they can't get rid of because it's made up of all these defaulted borrowers.
#finance #financetraining #TrevorCalton #securities #securitiesfinance #tranches #mortgagebanker #EvergreenLLC #stepbystep #stepbysteptutorial #diagram #example #download #freedownload #howto
CRE loan
investing in real estate
investment properties and commercial real estate
commercial real estate lending
commercial real estate loan
SBA commercial real estate loan
commercial real estate financing
commercial property loan
commercial building loan
real estate lending
best commercial real estate loans
commercial property lending
- published: 13 Jul 2022
- views: 3365
6:00
Casual Economics: Mortgage-backed Securities
You've probable heard a lot about Mortgage-backed Securities, but how do they actually work? Find out in this episode of Casual Economics.
You've probable heard a lot about Mortgage-backed Securities, but how do they actually work? Find out in this episode of Casual Economics.
https://wn.com/Casual_Economics_Mortgage_Backed_Securities
You've probable heard a lot about Mortgage-backed Securities, but how do they actually work? Find out in this episode of Casual Economics.
- published: 06 Nov 2017
- views: 41748