Second, many pension funds were badly wounded in the mortgage-backed bond crunch of 2008 and 2009.
If you decide to buy a mortgage-backed bond, pay attention to where the pool is coming from.
Without long-term, paid-up capital, it is hard to write multi-year policies, let alone to organise insurance-backed bond issues or derivatives.
When you buy a mortgage-backed bond, you are in effect buying a straight bond and then giving away a call option to the homeowners.
Mortgage-backed bond issues require a sophisticated appreciation of credit risk.
ECONOMIST: Is Japan��s property market at last nearing bottom?
As you know, before the collapse of the mortgage-backed bond market in 2007, banks routinely offered mortgages worth more than 90% of the value of a house - and even 100% mortgages were relatively common.
The SPDR Barclays Capital Mortgage Backed Bond ETF ( MBG) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks the U.S. agency mortgage pass-through sector of the U.S. investment grade bond market.
In May, New York's insurance commissioner, Eric Dinallo, urged Brown to move the capital to ease concerns about MBIA. The company announced its decision to move the capital on the same day Moody's published a report detailing what it saw as significant deteriorations in certain home equity and other asset-backed securities backed by bond insurance.
Buy a bond backed by an aging 747 or 767 and you could find even 40% isn't enough of a discount.
Freddie Mac ( FRE - news - people ), one of the largest providers of funding for U.S. housing, is set to break ground on its first bond backed by commercial mortgages, according to Thomson Reuters.
However, no such help will be coming for the thousands of bond issues backed by corporate sponsors or a home builder with empty lots and incomplete infrastructures.
On the state level, various of the bond issues backed by revenues from the global tobacco settlement, are trading at from 66 cents to 74 cents on the dollar.
In part because of regulation, insurance and pension firms prefer big bond issues backed by the government or large firms, which can be easily traded in and out of.
ECONOMIST: Growing firms need to look beyond the big banks for credit
The promise of a massive support program for Spanish and Italian debt markets started boosting continental bourses in late July as government bond yields backed down from scary mid-summer peaks.
They also noted a story in the Wall Street Journal included more details regarding a EUR1 billion covered bond issue backed by Spanish regional debt that failed to sell last week.
FORBES: Gold Prices Could Rally Next Week If Dollar Gains Fizzle
Further, fresh fears about debt auctions in Spain resurfaced when a story in the Wall Street Journal included more details on why a EUR1 billion covered bond issue backed by Spanish regional debt failed to sell last week.
FORBES: Higher Prices Seen Next Week For Gold - Participants
Jack and Witt underwrote countless municipal bond issues and backed politicians as diverse as Orval Faubus (Arkansas governor from 1955--67) and Bill Clinton.
European bond yields had backed off just Friday morning, but then late in the day rose on the lack of progress on a Greek government being formed.
Spanish and Italian government bond yields have backed off recently, which is an indication the EU debt crisis has not escalated in the view of the market place.
The rules were issued by the National Association of Financial Market Institutional Investors, an industry body tasked with overseeing China's interbank bond market and backed by the central bank.
Essaye noted in his report Friday that the bond market has backed up the 10-year yield rose above 2% following the frenzy of Fed talk Wednesday and rate-sensitive sectors have been punished, particularly utilities.
FORBES: After Rally Pauses, Bulls And Bears Ready For Next Round
European bond yields have also backed off just a bit Friday, from the higher levels seen earlier this week.
Capital markets have ballooned: think, for example, of the development of the junk-bond and asset-backed market in the 1980s.
The rule that all bond issues must be backed by collateral was lifted in 1979, and other restrictions were also slowly relaxed, but companies still need an investment-grade rating.
The company sold a combined equity, bond and derivative product and backed up the conversion feature with a pledge of shares by the insiders, then handed the proceeds of the offering to the same insiders.
Essentially leveraged bond funds that own mortgage-backed securities, the Agency MREITs have been the among the few financial stocks to deliver positive total returns in the last 18 months since credit concerns resurfaced for most bank and financial stocks.
But in recent years the bond insurers started to guarantee complex securities backed by home mortgages.
One type of bond to consider are investment grade Mortgage Backed Securities.
FORBES: A Haven From A Eurozone Crash: Investment Grade Bonds
Essentially leveraged bond funds with 100% government-backed mortgage-backed securities (MBS), the Agency MREITs have lately been subjected to a series of negative but largely irrelevant news headlines.
FORBES: Agency REITs Keeping Portfolios Safe During Volatility
Bond mutual funds that invest in mortgage-backed bonds prefer investment grades.
应用推荐