Template-Type: ReDIF-Article 1.0
Author-Name: Attila Tapaszti
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: tapasztia@mnb.hu

Author-Name: Tamás Tóth
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: totht@mnb.hu



Title: The US Agency Mortgage-
Backed Securities (MBS) Market

Abstract: Mortgage bonds, a trailblazing instruments in securitisation, emerged and
quickly gained popularity in the second half of the 1970s to facilitate home
ownership, which is part of the American Dream. Mortgage-backed securities
consolidate cash flows from a large number of combined mortgages, and,
after deducting the costs of debt servicing, pass them on to bond buyers
proportionately (participatory notes). In the jargon, they are called pools,
a term which refers to the underlying mortgages, or they are denoted using
the acronyms PT (pass-through), MBS (mortgage-backed securities) or RMBS
(residential MBS – as opposed to commercial MBS [CMBS]).

Keywords: agency mortgage, bank securities market

Journal: MNB Handbooks
Pages: 48
Volume: 1
Issue: 5
Year: 2016
File-URL: https://www.mnb.hu/letoltes/mnb-oktatasi-fuzetek-5-eng-digit.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:handbk:v:1:y:2016:i:5:p:48