Understanding Mortgage-Backed Securities

This chapter explores the complexities of mortgage-backed securities (MBS) and their vital role in the bond market, emphasizing their significance as a major asset class. It addresses common misconceptions and outlines the risks faced by investors, while providing strategic insights into current market dynamics and investment opportunities. Additionally, the chapter analyzes the impact of interest rates and volatility on MBS prices, offering a comprehensive view of the evolving landscape of mortgage bond investments.