The housing-backed investment vehicles that fueled the financial crisis are enjoying their best stretch in years
|12/03/2019||Posted by BusinessMediaguide.Com under General World News||
- Mortgage-backed securities hit a three-month winning streak after outperforming US Treasuries through November, Bloomberg reported Monday.
- The surge was primarily driven by lower refinance rates and a drop in volatility for mortgage-backed assets. When more borrowers refinance loans with lower interest rates, the securities lose their appeal against Treasury bonds.
- The assets gained new fame in 2008 when subprime mortgage-backed securities powered the year’s housing market meltdown and subsequent recession. Those who bet against the assets won millions and even billions when the housing bubble popped.
- Visit the Business Insider homepage for more stories.
Mortgage-backed securities hit a three-month winning read more >>>