What is mortgage-backed securities?

Mortgage-backed security takes real estate and other physical assets or securities and contracts as collateral to obtain bank loans, and pays the principal and interest in installments according to the contract.

The characteristics of mortgage-backed securities are as follows:

In real assets such as real estate or securities, contracts, etc. As collateral, obtain a bank loan and pay the principal and interest in installments as agreed in the contract;

After the loan is paid off, the bank returns the collateral.

Remarks: During this period, the certificates held by banks are mortgage-backed securities.