Question

Who typically invests in MBSs?

Answer 1

Mortgage backed securities are asset backed securities that are secured by mortgages.The typical investors in mortgage backed securities are -

1.Institutional Investors- These are group of high net worth individuals who invest in MBSs.

2.Corporate Investors- These are corporate entities which invest in MBSs.

3.Individual Investors - These are generally traditional retail investors who wants to take exposure in MBSs.

The minimum investment required to invest in mortgage backed securities is $ 25000. There are also some modified version of mortgage backed securities like Collateralised mortgage obligations that require just a minimum investment of $ 5000.Exposure in Mortgage Backed securities can also be taken in Exchange Traded Funds which invests in These MBSs.