Barclay's Mortgage Backed Securities Index is a comprehensive benchmark published by Barclay's Capital that tracks the performance of mortgage-backed securities issued by GNMA, Fannie Mae, and Freddie Mac, and is a component of the broader U.S. Aggregate Bond Index.
Credit Default Swaps (CDS) are financial agreements that function as a form of insurance against the default of a borrower. They allow the transferral of credit risk between parties.
Investment bankers play a crucial role in helping organizations raise capital by bringing new securities such as stocks or bonds to the market, guiding clients through the complexities of financial regulation, pricing, and issuing.
Liquidity refers to the ease with which an asset can be quickly converted into cash without significantly affecting its market price. This concept is crucial in financial and real estate contexts, as it influences the ability to sell assets promptly and efficiently.
The money market involves the interaction of buyers and sellers of short-term (one year or less) debt instruments, providing liquidity for major financial institutions and companies. Examples include Treasury bills, commercial paper, and certificates of deposit.
The secondary mortgage market involves mechanisms for buying and selling residential first mortgages. It enables lenders to sell mortgages and transfer the associated debt, thereby improving liquidity and fostering a more stable housing finance market.
The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.
Systemic risk refers to the potential for a major disruption in the function of an entire market or financial system, as opposed to just one or a few individual entities. It cannot be mitigated by diversification and is also known as market risk.
