What Are the Advantages of Investing in MBS?

By investing in MBS, investors are able to gain investment products with a high credit quality, because MBS issued by selected government-sponsored entities have direct obligations to investors to guarantee timely repayment of principal and interest.

MBS have an attractive current yield that is typically higher than other comparable fixed-income securities with credit risks.

MBS make monthly income payments rather than semi-annual payments, which in turn allows investors to have a higher frequency for reinvestment opportunities and personal expenditures, increasing flexibility for MBS investors.