2 ms·
I could be wrong, but my understanding is that these are rarely packed on a geographic basis, and more on a risk (or owner?) profile basis, which kind of breaks
by gervase 8y ago
I could be wrong, but my understanding is that these are rarely packed on a geographic basis, and more on a risk (or owner?) profile basis, which kind of breaks the "buying stock in a city" metaphor.
- gnode 8y agoMy understanding is that they group the owners together, then issue CDOs such that some are paid before others. Those which are paid last have the highest risk, but the largest rate of return. If you believe house prices are safer than the rest of the market does, you'd buy the high return high risk CDOs. It's also my understanding that they aren't issued on a geographical basis (beyond the country or state level). However, that's not to say they can't be, if investors take interest in distinguishing rural and urban mortgages.
- gowld 8y agomarket-specific residential REIT: https://www.reit.com/what-reit/reit-sectors https://www.reit.com/what-reit/reit-sectors