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Nothing. They just found a random ETF that owns MBS and quoted the stock price, while the original article is talking about the MBS market (which isn't part of
by mike_d 4y ago
Nothing. They just found a random ETF that owns MBS and quoted the stock price, while the original article is talking about the MBS market (which isn't part of the stock market).
It's like inferring the health of the commercial real estate market in the bay area by quoting Google's share price.
- xeromal 4y agoThanks. Not really familiar with that ETF so I wasn't sure if that was a big change or a small change but really it's an irrelevant change to the conversation.
- ProjectArcturis 4y agoNo, he's super wrong. That ETF is a basket of MBS. It's traded on the stock exchange so people can trade MBS as a general concept, rather than buying and selling individual bonds. If there were truly a "no bid" situation, the price of existing MBS would crater, and the price of the ETF would crater.
- ProjectArcturis 4y agoTell me you don't understand finance without telling me you don't understand finance.