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KIC000087 - Mortgage—Backed Securities I Publicly issued...

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Unformatted text preview: Mortgage—Backed Securities I Publicly issued pass-through securities (PlPs) El Similar to Ginnia Mae mortgage-backed securities D Badmd by conventional ratherlt'lm FHA anA mortgages I Insurad through priva insurance companies I Participation certificates (PCs) u Freddie Mac sells participation curltflcltu (PCS) and uses the proceeds to finmca the origination at conventional mortgagm from financial institutions ra ze ' l’l'lOl’igaQé obligations (cues): ( Club‘s) :1 Have semiannual interest payments El Are segmen ' to tram-hes. with the first trench having the mpayback I: Are attractive because investors can choose a class that fits their maturity desires I: Are sometimes augmented into interest-only (IO) and principal—only (PO) classes ’ Scrip [300(ij MortgageuBacked Securities I Mortgage—backed securities for small investors l:l Unit trusts have been created that allow small investors to participate I $9., a Molina! Ginnia Mae pass-through securities is sold in 51.000 pieces El Some mutual funds offer Ginnie Mae funds ...
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