MTBA: A Solid Play On MBS Offering 6% Yield
2025-07-24 05:19:11 ET
M ortgage B acked S ecurities are a popular asset class. MBS as they are commonly known, invest in bundles of home loans and other real estate debt bought from the banks or government entities that issued them. Investors in MBS receive periodic interest payments like bond coupon payments. They also get some portion of their principal back periodically and as a result they are a set of bond-like instruments with maximum pre-payment risk. While most traditional bonds feast on lower rates, MBS tend to suffer a bit, at least on a relative basis. The last thing you want is (some of) your principal back when rates are falling, but that is exactly what happens. Our protagonist du jour is an actively managed, exchange traded fund that invests in MBS and its name makes no secret of it....
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MTBA: A Solid Play On MBS Offering 6% Yield
NASDAQ: MTBA
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