What Are Residential Mortgage-Backed Securities (RMBS)?
RMBS are mortgage-backed securities that use household residences as the underlying guarantees for interest paid on the loans used to create the securities. Investors should be aware that compared to other types of MBS, RMBS tend to have lower rates of default and higher interest rates, due to the high demand for personal residences that necessitate these types of mortgage.
- What Is a Mortgage-Backed Security (MBS)?
- What Are the Advantages of Investing in MBS?
- Should I Invest in an MBS Fund Instead of Individual Mortgage-Backed Securities?
- How Are Mortgage-Backed Securities Different from Other Fixed Income Securities?
- What Are Some Examples of Mortgage-Backed Securities?
- How Are Mortgage-Backed Securities Hedged?
- What Are Collateralized Debt Obligations (CDOs)?
- What Is the Difference between Collateralized Debt Obligations (CDOs) and Mortgage-Backed Securities (MBS)?