Mortgage bond debt typically falls under the «good» debt category because it helps you maintain a strong credit history and there are tax benefits for your investment, which can be tax - deductible.
Not exact matches
In the short - term, however, this increased leverage may actually be bullish for junk
bonds, corporate
bonds, emerging market
debt and
mortgage - backed securities as it brings higher prices and lower yields, he said.
Government
bonds are a straightforward security, unlike, say, synthetic collateralized
debt obligations stuffed with sub-prime
mortgages.
Back in 2010 it paid $ 550 million to settle charges brought by the Securities and Exchange Commission that it mislead investors into buying a so - called synthetic collateralized
debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime
mortgage bonds, many of which plummeted in value shortly after the deal was sold.
These include emerging market
bonds, high yield
debt, corporate
bonds and
mortgage bonds.
The Federal Reserve pumps money into the banking system by purchasing
bonds and, when the system breaks down, makes enormous bailout payments to cover the bad
debts run up by banks and other institutions to
mortgage borrowers, businesses and consumers.
The Barclays U.S. Aggregate
Bond Index is a market value — weighted index of investment - grade fixed - rate
debt issues, including government, corporate, asset - backed, and
mortgage - backed securities, with maturities of one year or more.
I'm actively looking at my
debt and determining if it makes more sense to pay down
mortgages (locking in a guaranteed ~ 4 % return) or investing in
bonds (~ 1 % returns if held to maturity) or stocks (uncertain, but I just wrote an article about the current PE ratio and the inevitable reversion to the mean and I believe we are likely headed for 10 years of low single digit returns).
NexPoint Strategic Opportunities Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans,
bonds,
debt obligations,
mortgage backed and asset backed securities, collateralized
debt obligations and equities.
It's easier for them simply to swap their junk
mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury
bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented
debt!
NexPoint Strategic Opportunity Fund (NHF) is a closed end fund that seeks current income with capital appreciation through investment in floating and fixed rate loans,
bonds,
debt obligations,
mortgage backed and asset backed securities, collateralized
debt obligations and equities.
The Obama Administration's Wall Street managers have kept the
debt overhead in place — toxic
mortgage debt, junk
bonds, and most seriously, the novel web of collateralized
debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.
Debt securities include government and corporate bonds, certificates of deposit (CDs), promissory notes, debentures, preferred stock and collateralized securities (such as collateralized debt obligation (CDOs) and collateralized mortgage obligation (CMOs)-R
Debt securities include government and corporate
bonds, certificates of deposit (CDs), promissory notes, debentures, preferred stock and collateralized securities (such as collateralized
debt obligation (CDOs) and collateralized mortgage obligation (CMOs)-R
debt obligation (CDOs) and collateralized
mortgage obligation (CMOs)-RRB-.
I don't understand why people invest in
bonds but keep
mortgage debt on the books.
Is there any reason why someone with an outstanding
mortgage should buy
bonds rather than service their own more expensive
debt?
Personally I think
mortgage debt is the only good
debt, but I'm not sure I'd use it to buy low - yielding
bonds.
Investors have taken note and reduced their demand for Canadian
debt securities, pushing up
bond yields and, consequently,
mortgage rates.
The unit, the chief investment office (CIO), has been the biggest buyer of European
mortgage - backed
bonds and other complex
debt securities such as collateralized loan obligations in all markets for more than three years... The unit made a deliberate move out of safer assets such as US Treasuries in 2009 in an effort to increase returns and diversify investments.»
A
bond fund is typically comprised of
debt instruments, such as
bonds and
mortgage - backed securities.
To do this, we trimmed several positions including: corporate
bonds, emerging market
debt,
mortgage REITs and U.S. REITs.
The Fed's go - to move is tweaking its target for the federal funds rate, which is what banks charge one another for loans and the benchmark for our rates on
mortgages, credit cards and other
debts, as well as savings accounts, CDs and Treasury
bonds.
Hartford Funds» new ETF joins two other already listed active fixed income ETFs sub-advised by Wellington (Hartford Corporate
Bond ETF (NYSE: HCOR), an ETF focused on investment - grade corporate bonds, and Hartford Quality Bond ETF (NYSE: HQBD), a core bond ETF focused on investment grade debt, including mortgage - backed securities and US government securiti
Bond ETF (NYSE: HCOR), an ETF focused on investment - grade corporate
bonds, and Hartford Quality
Bond ETF (NYSE: HQBD), a core bond ETF focused on investment grade debt, including mortgage - backed securities and US government securiti
Bond ETF (NYSE: HQBD), a core
bond ETF focused on investment grade debt, including mortgage - backed securities and US government securiti
bond ETF focused on investment grade
debt, including
mortgage - backed securities and US government securities).
In order to stimulate the economy further, the central bank has engaged in quantitative easing (QE) or the purchase of U.S. treasury
bonds and
mortgage debt in order to drive down long - term interest rates as well.
@blip yeah from the actual reference used - $ 80 million in
bond debt secured by the property - thats not the same as a
mortgage.
Alistair Darling has explained to parliament the Bank of England's plan to swap
mortgage debts for government
bonds.
One can still trade the
mortgage - backed securities that helped derail the global economy or corporate
debt repackaged as
bonds.
If the film were described as a tutorial on MBS (
Mortgage - backed Securities), CDO (Collateralized
Debt Obligations), Credit Default Swaps, Tranches,
Bond Ratings, and Sub-Prime ARMs, most people's eyes would glaze over and they would keep skimming for showtimes of other new movie releases.
«If schools aren't willing to pay the
mortgage on
debt on their
bonds why should we?
For example, in response to the financial crisis, the Federal Reserve took the unusual step of embarking on a quantitative easing program in which it bought up
mortgage - backed securities and government
debt in the form of Treasury
bonds.
The index will rank U.S. Treasuries, U.S. investment grade corporate
bonds, U.S. investment grade
mortgage backed securities, U.S. high yield
debt and U.S. dollar denominated
debt of emerging market issuer according to their momentum / trend scores.
FGIC and other
bond insurance companies have been hobbled by their expansion into guaranteeing risky collateralized
debt obligations (CDOs) and asset backed
bonds, markets that have been hammered by rising
mortgage losses.
HSBC
Mortgage Fund HSBC Canadian
Bond Fund HSBC Emerging Markets
Debt Fund HSBC Monthly Income Fund HSBC U.S. Dollar Monthly Income Fund HSBC Global Corporate
Bond Fund
In our opinion, the so - called «spread sectors,» from high - yield
bonds to non-agency
mortgages and emerging - market
debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly for investors who know how to analyze these risks.
SUPPOSE YOU HAVE $ 200,000 in
bonds — and you also have $ 200,000 in
mortgage and other
debt.
Mortgage bonds offer the investor a great deal of protection in that the principal is secured by a valuable asset that could theoretically be sold off to cover the
debt.
Other
bonds offer collateral (such as
mortgage debts) to secure their
debt offering.
Those include domestic and international sovereign and corporate
debt, municipal
bonds,
mortgage - and asset - backed
debt securities, convertible
bonds and preferred stock.
In the United States, repos are typically done in conjunction with U.S. Treasury
bonds,
mortgage securities, corporate
bonds or other forms of
debt agreed upon by the counterparties to the agreement.
Returns from investments in «junk»
bonds, government guaranteed
mortgage securities and even some battered euro - zone
debt are plunging in the wake of global central bank policies intended to suppress borrowing costs.
Benjamin Graham, the father of value investing, was known to hold common stocks, preferred stocks, convertible preferred stocks,
mortgage bonds, subordinated
debt and convertible
bonds.
A collateralized
debt obligation is named for the pooled assets — such as
mortgages,
bonds and loans — that are essentially
debt obligations that serve as collateral for the CDO.
Mortgage - backed investments, unlike traditional
debt investments, are also subject to prepayment risk, which means that they may increase in value less than other
bonds when interest rates decline and decline in value more than other
bonds when interest rates rise.
The Fund pursues its investment objective by investing primarily in fixed income securities, such as U.S. Treasury
bonds, notes and bills, Treasury inflation - protected securities, U.S. Treasury Strips, U.S. Government agency securities (primarily
mortgage - backed securities), and investment grade corporate
debt rated BBB or higher by Standard & Poor's Global Ratings or Baa or higher by Moody's Investors Service, Inc., or having an equivalent rating from another independent rating organization.
My sense is that when the Fed stops its purchases of
mortgage bonds in the next few months, the longer - dated
debt markets will cease to be so friendly, and rates will rise.
After the program of MBS and
debt accumulation by the Fed ended, they were still «recycling» inbound proceeds from maturing and refinanced
mortgages to purchase replacement
bonds for a number of years.
Even the very bad «acronym
bonds» like CDOs (Collateralized
Debt Obligations) and CMBS (Commercial
Mortgage Backed Securities) are back in vogue.
High - interest preferred shares were replaced with lower coupon
bonds and
mortgage debt, for example.
Bond funds that invest in U.S. Treasuries, corporate
bonds,
mortgage - backed securities, municipal
bonds and other
debt securities pay monthly dividends, usually at a higher rate of return than money market mutual funds.
The Fund seeks to achieve this by investing primarily in the following categories of securities and instruments of corporations and other business entities: (i) secured and unsecured floating and fixed rate loans; (ii)
bonds and other
debt obligations; (iii)
debt obligations of stressed, distressed and bankrupt issuers; (iv) structured products, including but not limited to,
mortgage - backed and other asset - backed securities and collateralized
debt obligations; (v) equities; (vi) other investment companies, including business development companies; and (vii) real estate investment trusts.
Most loans from financial institutions and certain high - grade
debt securities such as
mortgage bonds are senior
debt.