Recent

% | $
Quotes you view appear here for quick access.

American Capital Agency Corp. Message Board

  • dr_klumps dr_klumps Jul 22, 2013 12:54 PM Flag

    Product: Mortgage Backed Securities, Yield 3%

    Mortgages still retain their power to unleash pain and suffering on all involved; there is a reason that the word itself comes from the Norman French "death pledge." The Normans and their kinspeople now populating the residual royal families of Western Europe may have been Vikings with manners, but they understood there was more to lending against a piece of property than meets the eye. A Mortgage is a contract with a Pledge to Death, meaning a very long time, a lifetime. It is very easy to make mistakes when you are investing for a lifetime. But you have to be aware of the liquidity risks and how these things are marketed and sold. MBS is not like stocks and when you do get a ownership paper, you may not even know what you have, except that it is guaranteed by Fannie and Freddie and maybe Ginnie Mae, Agencies of the Government.
    More than 90 percent of agency MBS trading volume occurs in the forward market, which is known as the
    TBA (to-be-announced) market. In a TBA trade, the seller of MBS agrees to a sale price, but does not specify which particular securities will be delivered to the buyer on settlement day. Instead, only a few basic characteristics of the securities are agreed upon, such as the coupon rate, the issuer, and the
    approximate face value of the bonds to be delivered. While the agency MBS market consists of thousands of heterogeneous MBS pools backed by millions of individual mortgages, the TBA trading convention allows trading to be concentrated in only a small number of liquid forward contracts. TBA prices, which are observable to market participants, also serve as the basis for pricing and hedging a variety of other MBS, which
    themselves would not be delivered into a TBA trade and may not even be eligible for TBA delivery.
    GET THE PICTURE......VERY MURKY.....there is no rack with the merchandise on where you can examine it or feel it, the details will be forwared to you at a future date, not on an individual basis but packed in pools.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Mortgages still retain their power to unleash pain and suffering on all involved; there is a reason that the word itself comes from the Norman French "death pledge." The Normans and their kinspeople now populating the residual royal families of Western Europe may have been Vikings with manners, but they understood there was more to lending against a piece of property than meets the eye. A Mortgage is a contract with a Pledge to Death, meaning a very long time, a lifetime. It is very easy to make mistakes when you are investing for a lifetime. But you have to be aware of the liquidity risks and how these things are marketed and sold. MBS is not like stocks and when you do get a ownership paper, you may not even know what you have, except that it is guaranteed by Fannie and Freddie and maybe Ginnie Mae, Agencies of the Government.
      More than 90 percent of agency MBS trading volume occurs in the forward market, which is known as the
      TBA (to-be-announced) market. In a TBA trade, the seller of MBS agrees to a sale price, but does not specify which particular securities will be delivered to the buyer on settlement day. Instead, only a few basic characteristics of the securities are agreed upon, such as the coupon rate, the issuer, and the
      approximate face value of the bonds to be delivered. While the agency MBS market consists of thousands of heterogeneous MBS pools backed by millions of individual mortgages, the TBA trading convention allows trading to be concentrated in only a small number of liquid forward contracts. TBA prices, which are observable to market participants, also serve as the basis for pricing and hedging a variety of other MBS, which
      themselves would not be delivered into a TBA trade and may not even be eligible for TBA delivery.
      GET THE PICTURE......VERY MURKY.....there is no rack with the merchandise on where you can examine it or feel it, the details will be forwared to you at a future date, not on an individual basis but packed in pools.

      Sentiment: Strong Sell

      • 1 Reply to nophilordoc
      • Mortgages still retain their power to unleash pain and suffering on all involved; there is a reason that the word itself comes from the Norman French "death pledge." The Normans and their kinspeople now populating the residual royal families of Western Europe may have been Vikings with manners, but they understood there was more to lending against a piece of property than meets the eye. A Mortgage is a contract with a Pledge to Death, meaning a very long time, a lifetime. It is very easy to make mistakes when you are investing for a lifetime. But you have to be aware of the liquidity risks and how these things are marketed and sold. MBS is not like stocks and when you do get a ownership paper, you may not even know what you have, except that it is guaranteed by Fannie and Freddie and maybe Ginnie Mae, Agencies of the Government.
        More than 90 percent of agency MBS trading volume occurs in the forward market, which is known as the
        TBA (to-be-announced) market. In a TBA trade, the seller of MBS agrees to a sale price, but does not specify which particular securities will be delivered to the buyer on settlement day. Instead, only a few basic characteristics of the securities are agreed upon, such as the coupon rate, the issuer, and the
        approximate face value of the bonds to be delivered. While the agency MBS market consists of thousands of heterogeneous MBS pools backed by millions of individual mortgages, the TBA trading convention allows trading to be concentrated in only a small number of liquid forward contracts. TBA prices, which are observable to market participants, also serve as the basis for pricing and hedging a variety of other MBS, which
        themselves would not be delivered into a TBA trade and may not even be eligible for TBA delivery.
        GET THE PICTURE......VERY MURKY.....there is no rack with the merchandise on where you can examine it or feel it, the details will be forwared to you at a future date, not on an individual basis but packed in pools

        Sentiment: Strong Sell

    • There are places that can help you. Please seek help immediately.

    • LOL. You are so full of it. The TBA is all agency mortgages. Thus you have principal and interest guaranteed by the US government via FNMA. It's not murky, its just generic mortgages to be delivered at a future date with an agreed upon coupon. You can upgrade them to spec pools if you want for a small fee lol.

 
AGNC
20.40-0.140(-0.68%)May 6 4:00 PMEDT