Private Mortgage Backed Securities
Just like corporate bonds, private securities are trading at distressed prices. Chief Executive Officer Richard S. Berg talks about the difference between the two.
Just like corporate bonds, private securities are trading at distressed prices. Chief Executive Officer Richard S. Berg talks about the difference between the two.
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That is to simplistic… Many of those securities contain high-risk loans. These securities are leveraged 10,20,30 to 1. A 10% decline wipes out your capital. When this happens the selling starts and the value declines even more.