What is a Mortgage Backed Security (MBS)?
ฝัง
- เผยแพร่เมื่อ 16 ก.ย. 2024
- 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.
where is this girl gone after this amazing presentation?
Brilliantly designed and structured. Simple and effective. Well done! Thanks a lot!
That was clear and informative; thank you very much.
Wow....most comprehensible explanation on MBS on youtube ever...thanks for uploading
Absolutely clear. Direct to the point with no worthless information. Thank you.
excellent video. Explained a complex process of mortgage loan in layman terms. Thanks
This is amazing! Best explanation I've come across! Thanks so much, this was super helpful!
Explained much better then anyone on TH-cam...
Banks don't lend money they purchase securities from the borrower. The bank buys the promissory note from the borrower and lends the borrower his own money. Read Modern Money Mechanics page 6.
Very well explained ! According to the number of views and the positive comments , people do wait for more videos from you. Regards from Helsinki , Finland.
Super clear explanation, thanks for the video.
Very informative and nicely explained :) Better than Khan Academy.
Thanks very much for this! Very well explained.
Wow, short & informative. You would be a fantastic teacher :) Also love that you stood for occupy wallstreet!
Smooth and coherent explanation, thank you Miss.
Cogent and clear explanation of Mortgage Backed Securities, thanks for the insight.
You explained it greatly, I was wondering what was MBS was, now I understand what it is
It wasn't detailed enough to be a one-stop explanation, but whatever you explained, you did so pretty well. All of your videos are exactly out of my curriculum too, lol, so I think I'll get through them before moving on. Thank you!
best video,keep making these as lay man can understand this better
Good info. I think your video is the only one that explains the reason why banks securitize their mortgages.
Great!!!!!!! Very easy to understand !
I am waiting for the COD explanation. :))
Thanks so much you explain it so clear!
Thank you so much for this video! I was truly struggling to understand this concept. You are fantastic!
Your videos are the best at explaining this complicated stuff. :)
Really clearly explained. Better than my prof.
How much does the bank make on selling the mortgage?
Great explanation!
This was so clear! You should do more videos like this!
Thank you so much, it is clear and short, good and helps!
Very well done. Thank you for this.
Please tell me she uploaded the rest elsewhere? So comprehensive the best aid in basics of securitisation I’ve seen outside uni 👌👌👌
Thanks... I understood better with you than with my Master's degree teacher...
Great video, will take you on a date next time I’m up there protesting
Wow this is exactly what I needed, thank you
Fantastic video! Thanks for sharing.
Simply explained - thanks :)
This video is so useful. Thanks
helped me to understand this complex concept..thanku very much
Brilliantly explained thanks!
Very helpful. Thx for posting.
Number abstractions are so much fun!
If I hold a mortgage with a bank and they're secretly enriching themselves off of my pledged home and mortgage payments, shouldn't I be entitled to at least a fair share of the income gains stemming from the Mortgage backed securities?
Hi , thanks for taking the time to explain this.
can I ask why the mortgage can't be traded before it becomes an MBS ? besides the obvious small investment the single mortgage would offer,
Hey buddy your videos are too good keep it up....
Great job!! Super helpful
Really good video
Is this one video in a series you've made? I feel it is clear and informative; I am hopeful you have more work to share.
Excellent
Thanks 😁 Terima kasih banyak.
thank you so much ...it was truly helpful...keep it up!
Thank you.
I NEVER KNEW this could even be possible.
very clear - thanks for sharing
Awesome explanation! Thanks heaps.
Great video! Thank you :)
I wish it had been explained what’s in it for the bank to do this as far as making money goes because it looks like they wouldn’t get the interest paid by the borrower since it goes to the investor.
Great Video.
Thank You 🙏🏻
Very good, thank you
Wow, thank you.Are you a CFA Jedi or something like that??? Awesome explanation.
Thank you again.
nice job done. thanks.
Great insight! Thnx
Amazing
thank you very much.
To the extent that the future is unpredictable one could just as well expect interest rates to go up as go down. Yet Wall Street seemed to coalesce around the assumption that interest rates would continue to go down for the foreseeable future. Why did they anticipate perpetually falling interest rates ?
thanks for this video it was great
Nice
thanks Miss
Why does the risk of pre-payment change just because entity B is holding hundreds of mortgages rather than the original bank holding hundreds of mortgages?
Even if entity B gathers mortgages from multiple banks, the percentage of those pre-paying wouldn’t necessarily change.
If one out of 10 mortgages is prepaid or 1000 out of 100,000 mortgages are prepaid, the percentage is the same and the impact on the overall flow of money is the same, percentage-wise.
I’m not saying she’s wrong, just asking questions to clarify what I don’t understand.
Do you feel corporate bonds will have the same fate as MBS, and if so, would you advise shorting the stock of companies that carry billions of bonds on their balance sheets while at the same time are not making a profit?
wow really informative
If the interest, which is the income to the lender, just passes through the mortgage backed security and the investment bank holds it, how is the investment bank making any money? I realize that the investors are paying the IB to invest in the MBS but aren’t they just ultimately giving back what the IB paid to the retail bank to create the MBS from the hundreds or thousands of mortgages purchased from the retail bank?
#MBSX
too good
is there a difference between investing in these than mortgage notes or is it the same thing? Can you contrast on all inclusive trust deed ?
thanks a lot!
Good
thanks.
thankyou
Apply this generally to asset backed security
good explanation. thank you very much!
Hi very good
Thanks a Loooott
What was the benefit of bank and investment bank who provides loan to individual in 1st instance - if later it is bundled and sold it to investors as a security.
As ultimately investors is the 1 who received interest and principal amount.
Wondering the same.
MBS AKA mortgage notes?
plz tel 2 diffrent ways of ABS also...
Banks don't give out loans, they use your signature.. Then you pay them. The Promesary Note that u sign... Is your loan.
Very well done! You ruined it by completely unnecessary politicizing the topic at 8:25.
I don't understand something. How much does a bank sell the box to investors for? ie. the "IPO" price. Is it exactly the principal amount + interest? Then the banks are taking all the interest value, leaving nothing for the investors...so why would investors bother buying such a security?
So usually at issuance price is par or a slight discount from what I've seen on prospectuses (99.999998). the investors are getting interest... and pricing is usually done by taking the NPV of all the cashflows at a certain discount rate/original face
Don't know if this reply will ever reach Shayak Dutta, but MBSs are pass-throughs: all of the principal is passed through, and some of the interest. The rest of the interest is retained by the originator or sponsor. So consider a 5% $1000 loan that backs a 4% $1000 MBS. The investor pays $1000 for the bond, and earns 4%, secure in the concept that the MBS is supported by a loan secured by a mortgage over a residential property. When loan repayments are received, all of the principal is paid to the investor, so eventually the investor gets back her $1000. The investor also earns interest at 4%, with the rest retained by the sponsor. There are some other pieces to the transaction, but this captures the essence as it pertains to your question.
Still waiting for CDO video?!
Still waiting for the next video??
female teachers, thumbs up!
Hi could you kindly explain ABS
can you do more video? thanks
After the 90 days on the 91st day the bank gets the full amount of payment for the house in full from the Insurance Company...Then they sell the loan Bayview, M&T, SPS, to whomever wants to buy it.. then it's in the bubble she talking about
Is the bank geting any interest rate percent before selling them to investment banks and how the bank makes money by this
5/5 yay
7:30 Bad bond ratings aswell !!!!
Clear, concise and interesting.
However, there is MUCH about the ‘evil’ side of securitisation that you failed to mention. Be it by choice, or lack of knowledge. Although, you did hit one nail on the head: “... without the borrowers knowledge...” (this occurs)
So, how about take a minute to reflect on that...
Along with the FACT that ‘banks’ (which, by its correct definition, being somewhere one can DEPOSIT MONEY- which nowadays does NOT happen- thus- deception number 1) DO NOT LOAN MONEY!!! (Please... do your research on this! There are many court cases and other factual evidences to confirm this! One such document is called “Affidavit of Walker Todd”- an ex- Fed reserve lawyer who blew the whistle to confirm there IS NO MONEY! It’s a lie perpetuated by the fake banks to trick the people into continuing to deposit their hard earned ‘money’ (promissory notes) and he states it is just “made out of thin air...”
Then, as you stated, the fake banks don’t inform its CLIENTS they are going to DOUBLE DIP and make MASSIVE (digital) PROFITS by securitising their negotiable instruments (signed mortgage) by trickery and deceit... certainly not with lawfully, and legally required FULL DISCLOSURE.
All parties are deceived... and the fake banks profit other ways too, also not mentioned here, and neither can I be bothered to write now, but suffice to say the fake banks have numerous other ways to siphon money from the consumers AND investors, that ignorantly/ naively enter their ‘den of deceit’
Please people, PLEASE, do your DEEP research into all this. Don’t be fooled, or deluded into thinking this is anything other than a scam by the banking industry.
Here’s a few thoughts:
1. Why DONT ‘banks’ inform its clients they will securitise THE CLIENTS PAPERWORK??
2. No one has authority to on-sell any property they don’t own.
Securitisation is doing exactly this.
3. ‘Who’ then OWNS the debt?
May you all see the truth.
God speed.
well explain but you r going too fast while explaining