Sentences with phrase «borrower sells the bonds»
Not exact matches
Since mortgage borrowers will tend to exercise this right when it is favourable for them and unfavourable for the bond - holder, buying an MBS implicitly involves selling an option.
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In other words, a bond is a loan sold or issued by the borrower (issuer) and purchased by the lender (investor).
That acceptance should put green bonds and mortgages on the radar of every commercial mortgage broker looking for creative financing alternatives for borrowers who want to capitalize on the societal and economic benefits of acquiring, selling or developing energy - efficient, environmentally friendly properties.
Concern among investors is mounting that lenders are lowering their standards amid the rush to sell new bonds, making it easier for borrowers to fund potentially unstable projects.
In the portion of the bond market that borrowers often use to fund large real estate transactions, sales of securities tied to such assets as hotel portfolios and individual office towers have tripled this year, with $ 16.7 billion sold, according to Morgan Stanley.