Ginnie Mae bonds are securities investments that are offered by the Government National Mortgage Association. The main types...
Mortgage-backed securities typically offer yields that are higher than government bonds. Securities with higher coupons offer the potential for greater returns but carry increased credit and prepayment risk, meaning the realized yield could be lower than initially expected. Investors may receive higher pa...
A pool of 30-year mortgages will have an effective duration for investors of seven to eight years. The high quality of government backed MBS and this duration puts them in competition with U.S. Treasury five- to 10-year bonds. Treasury securities are considered the safest income investments. ...
thereby gaining both a source of new funds as well as greater flexibility to pursue new business. The benefit to the buyer—usually institutional investors—is that they can pick up additional yield relative to government bonds and augment their portfolio diversification. ...