Uncle Pennybags asked:


Supposedly, investors who invested in these mortage backed securities are taking a bath, and the securities have declined big time, right?

Well, these securities must have some value, I mean not every loan is defaulting, and even the ones that are are backed by homes with some real value.

So I figure since everyone is freaking out about these securities, they must be really cheap now. How can I invest in them at today’s sale prices?

Jack

3 Responses to “How can I buy these risky mortgage backed securities I keep hearing about?”

1. richard t on August 17th, 2009 10:32 pm

   Sheila

   go to any commercial bank or brokerage house…open a account///////////// tell them what you want to buy and do it………..

2. Steve B on August 20th, 2009 1:25 pm

   Lydia

   They are sold in ‘packages’ of (at least) a few million $$’s at a time ….. there MAY be some specialist Funds that invest in this type of security .. however you might do better to simply buy Bank shares or property funds direct

3. Oh Boy! on August 23rd, 2009 12:23 pm

   James

   These MBS trade in units of several million dollars. You can’t invest $10,000.

   Also, it requires a significant amount of back office support to track each individual mortgage in the portfolio and account for payments, prepayments, pay offs, etc.

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