Author : EconomyWatch Content

    A Mortgage Backed Security (MBS) is a credit portfolio that is asset-backed or secured by mortgage(s). An MBS portfolio is created by government agencies, government-backed entities as...

Collateralized debt obligations enable the creation fixed income securities from a diverse pool of debt instruments, such as loans and corporate bonds, having varying yields and risks. Due to...

    A CDO debt is a financial portfolio created with several similar types of securities, such as corporate bonds and commercial loans and home mortgages. A collateralized debt...

 Backed securities are primarily serviced by cash flows arising from a set pool of receivables or other financial assets that may include loans, leases, credit card debt, receivables, royalties...

An Asset Backed Security or ABS refers to a financial security or bond backed by a loan, lease or receivables against any type of cash asset. An ABS is...

Securitization is the process of pooling various types of assets and using them as collateral to issue securities. The structured finance process allows the issuer access to greater funding...

    Credit enhancement is a financial process of reducing the credit risk. It is done by offering collateral, insurance or other agreements to the lenders as reassurance if...

    Collateralized debt obligations (CDOs) are gaining wide acceptance among investors as these are constructed with multiple securities, helping to diversify risks. In fact, CDOs are typically sold...

The spread of a CDS is the annual amount that a protection buyer pays to the protection seller during the period of the contract. It represents the fee or...

    A Credit Default Swap or CDS allows the holder of a fixed income security to transfer the credit risk portion of that security to another party for...