Mortgage-Backed Securities Join 1st Rank of Investments

By Talley, Karen | American Banker, July 22, 1997 | Go to article overview

Mortgage-Backed Securities Join 1st Rank of Investments


Talley, Karen, American Banker


Mortgage-backed securities are becoming more mainstream, with banks, insurers, and pension funds making the products key components of their portfolios, a new survey found.

Mortgage products "are standing alongside" corporate or government securities as popular investments, said Jeannette Rogers, research chief at Capital Access International, which released the survey this month. This was not the case five years earlier, when the Murray Hill, N.J., research firm found fewer investors holding smaller percentages of mortgage assets.

Mortgage securities "have really become fundamental investments," Ms. Rogers said. She based the assessment on the firm's recent survey of institutional investors. Capital Access polled chief investment officers and bond department heads at more than 3,000 firms and received responses from 446.

The results provide a rare snapshot of the secondary mortgage market, from the perspective of who is investing, what kinds of securities they are buying, and what kind of collateral is being used.

Just how popular are mortgage assets? The survey found 87% of respondents buy the products for their portfolios. Their holdings range from less than $1 million to several billion dollars.

Their popularity shows that mortgage investments have smartly recovered from the black eye they received in 1994 and 1995 when interest rate volatility caught many investors off-guard. Indeed, the products are consistently outpacing such popular instruments as Treasury securities and corporate debt.

Mortgage securities "are providing better, more consistent returns" than a number of other investments, Ms. Rogers said.

Banks are among the biggest buyers of mortgage investments, making purchases for their own books and for their customers, the survey showed. About 54% of banks have more than $1 billion of mortgage assets in their own portfolios, and 21% have put more than $1 billion worth in trust accounts they manage. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Mortgage-Backed Securities Join 1st Rank of Investments
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.