asset-backed / mortgage backed securities

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uqula

Senior Member
Polish
Hello,

Can anybody explain to me what does 'asset-backed securities' mean? My guess is that there actually exist some kind of goods that cover the value of the securities in question? Please confirm.

Thanks a lot in advance!
 
  • uqula

    Senior Member
    Polish
    Hello,

    Please, elaborate on the meaning of 'mortgage-backed assets'. It tells me nothing. I don't even dare to guess.
     

    Davidvs91

    Senior Member
    English - American
    A mortgage backed security is an investment that is securitized by a morgage. If the mortgage is defaulted on, the investment is worthless, unless the house is reposessed.
     
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