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What is the market cap for Vanguard Mortgage Backed Securities ETF VMBS?
Wiki User
∙ 9y ago
As of July 2014, the market cap for Vanguard Mortgage-Backed Securities ETF (VMBS) is $429,844,000.00.
Wiki User
∙ 9y ago
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How does the stock market effect mortgage refinancing rates?
When the stock market drops it tends to help mortgage rates since investors tend to go towards Mortgage Backed Securities. However, as of now there is no direct correlation between the two.
What is the market cap for Vanguard Short Term Inflation Protected Securities Index Fund VTIP?
As of July 2014, the market cap for Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP) is $1,238,264,000.00.
What are the main causes of World Wide Recession 2008?
The collapse in the mortgage and real estate market that produced and oversupply of houses, plummeting the prices of houses and rendering worthless the so called "Mortgage Backed Securities" that were issued by financial institutions having as an underlying assets the mortgage loans.
Reason of global economic crises?
Some of the reasons for this crisis are:1. The US Real estate market crash2. High default rates on Subprime loans &3. Subprime Mortgage backed securities
Why is the US in the recession?
Due to a variety of factors...Some of the reasons for this crisis are:1. The US Real estate market crash2. High default rates on Subprime loans &3. Subprime Mortgage backed securities
Investing in Bonds?
form_title=Investing in Bonds form_header=Have a personal finance expert help you invest in bonds by building your portfolio. What types of bonds are you considering for your investment?*= {Municipal Market, Government Market, Corporate Market, Mortgage Backed Securities, Asset Backed Securities, International Bonds} How much are you thinking about investing?*= _Enter Amount[50] Are you thinking of a long term investment?*= () Yes () No What is the current mix of investments that you own?*= _Please Describe[50]
What are the risk involved in mortgage backed security?
market riskMortgage backed securities, or mortgage derivatives as they are also known, depend on payment of the mortgage. The 2008 problem was caused by sub-prime domestic mortgages (to home-buyers with bad credit records/FICO scores) being pooled and split into tranches which were likely inexplicably give AAA ratings.The income of such securities is based upon payment of mortgage principal and interest which is normally secure if the credit ratings of those paying them are good. These sub-prime mortgages were believed by investors to be AAA rated.They were gobbled up by investors and the prices of the securities rose to high levels. When repayments faltered, and investors tried to recover their money, the prices of the securities far outweighed their worth so the market crashed.So yes, the answer 'Market Risk' is correct -but it is a specific market risk based upon the truth of the credit rating of such securities. Had the correct rating been given, the price of mortgage derivatives at this time may not have reached such heights because the demand would not have been so great.Mortgage derivatives, or securities, can be a good investment - but only if the underlying structure is not based upon lies and deceit - or perhaps a misunderstanding of how they work.They were sure part of the beginnings of a worldwide recession - although not the whole cause of it!
What day-count conventions are used in the bond market?
30/360 - for corporate bonds, agency and municipal bonds, mortgage backed securities Actual/360 - for T-bills, commercial paper Actual/365 - US Treasury bonds
Process of a bailout plan?
The Team would identify the companies that need help and purchase illiquid securities from them (Mortgage backed securities, Collateralized debt obligations etc) Buy purchasing these, the FED would be inducing liquidity into the market using which those companies can carry on their business. This would induce a chain reaction and help stabilize the economy.
Different components of financial of securities market?
Components of the Capital market: 1. Bond Market - the market for debt instrument of any kind. 2. Mortgage Market - deals with loan or residential, commercial, and industrial real estate and on farmland. 3. Stock Market - common and preferred stocks issued by corporations are traded.
What is Total value of us mortgage market?
The total stock of mortgages outstanding in the US is about $10 trillion. However, the market value of these mortgages (whether still on banks' balance sheets or securitised and embedded in RMBS (Residential Mortgage Backed Securities)) is in reality lower by $1-1.2 trillion, due to the fact that U.S. homeowners can walk away from their mortgage leaving the lender with "no recourse". In other words, book mortgage value = about $10 trillion, while actual value is more likely $8.8 trillion to $9 trillion, due to losses on foreclosures. The total stock of mortgages outstanding in the US is about $10 trillion. However, the market value of these mortgages (whether still on banks' balance sheets or securitised and embedded in RMBS (Residential Mortgage Backed Securities)) is in reality lower by $1-1.2 trillion, due to the fact that U.S. homeowners can walk away from their mortgage leaving the lender with "no recourse". In other words, book mortgage value = about $10 trillion, while actual value is more likely $8.8 trillion to $9 trillion, due to losses on foreclosures.
What was subprime mortgage crisis of America?
The Subprime Crisis is an economic problem that happened in the United States. It cannot be explained in a paragraph or so. In short, it happened due to uncontrolled lending in the US Financial Markets. Some of the reasons for this crisis are: 1. The US Real estate market crash 2. High default rates on Subprime loans & 3. Subprime Mortgage backed securities
