Saturday, August 26, 2006

Who Owns All the Mortgage-Backed Securities?

As signs of real estate collapse become all the more obvious, the big question has to be "Who owns all the mortgage-backed securities?".

Total market value of all outstanding U.S. MBS at the end of the first quarter of 2006 was approximately $ 6.1 trillion, according to The Bond Market Association.

Think about that, a $6.1 trillion debt sector where the underlying collateral is declining in price. Wall Street has sold these securities to every nook and cranny of the investment world. There are going to be huge MBS portfolios that will be underwater once the foreclosures start. It is going to damage retirement plans and much more. We trust you don't own any of this stuff.

1 comment:

  1. I'm glad that I don't own any of these mortgage-backed securities. I only trust Long Island mortgage rates and I have a consultant that helps me with the mortgage loans that I have.