4 ms·
No, 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 sellin
by ProjectArcturis 4y ago
No, 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.