Financial Terms

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Mortgage-backed securities (MBS)

They are a series of loans to home buyers sold to outside companies to quickly raise capital. Companies purchase several loans, group them, issue shares and sell them to investors. Thus, when the payer makes the next payment in accordance with the established schedule, he shares are distributed between the original credit institution, the company that issued the shares and the investors.

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Risk warning: Trading on financial markets carries risks. The value of the investments can both increase and decrease and the investors may lose all their investment capital. In case of a leveraged product, the loss may be more than the initial capital invested. Detailed information on risks associated with trading on financial markets can be found in General Terms and Conditions for the Provision of Investment Services.