Structures

MBS

Also known as: mortgage-backed securities, mortgage-backed

status: draft

Mortgage-backed securities. Bonds collateralized by pools of residential or commercial mortgages. The broader category includes RMBS (residential), CMBS (commercial), and agency MBS (guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae).

What to watch

Agency MBS carries implicit or explicit government backing, so credit risk is minimal but prepayment risk is significant. Non-agency MBS (private-label) has credit risk that varies by collateral quality and structure. Prepayment speeds accelerate when rates fall; extension risk materializes when rates rise. Model both directions.

Referenced in 24 topics

Agency RMBS asset-classes Basel III/IV capital treatment regulatory Calculation agents and data agents counterparties Choosing the right structure playbooks CMBS (conduit, SASB, large loan) asset-classes Credit-linked notes / synthetic securitizations structures Fund accounting and administration for ABF operations-lifecycle Fund operations infrastructure for ABF operations-lifecycle Insurance ALM constraints capital-sources Legal counsel counterparties Market intelligence market-landscape NAIC filing and designation deep dive legal Non-agency RMBS / non-QM / investor-purpose asset-classes Primary market process market-landscape Rated note feeders structures Risk factors documentation Secondary market and liquidity market-landscape Selecting and working with trustees playbooks Small business loans (including SBA 7(a)) asset-classes Structuring deals for investor appeal playbooks Tax classifications explained legal Term securitization (ABS/MBS) structures Trustees counterparties US entity types for ABF legal