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Mortgage payments are bundled into securities called RMBS. By shorting these securities, you are not shorting the mortgage company, but the assets themselves (t
by andrevvo 10y ago
Mortgage payments are bundled into securities called RMBS. By shorting these securities, you are not shorting the mortgage company, but the assets themselves (the mortgage receivables).
- AnimalMuppet 10y agoCan you short those?
- andrevvo 10y agoYup, best way to think about them are as bonds in which the credit rating is determined by the underlying asset quality rather than the company itself.
- AnimalMuppet 10y agoTIL.