Like the MBS, it is based on mortgages; but like the CDO, it is divided and sold in tranches, based on the mortgages' maturities and risk factor. What Is a Mortgage-Backed Security—MBS?

A CDO whose underlying assets are mortgages is known as a mortgage-backed security (MBS). MBSs take numerous mortgages and package them into one product with various tranches. The tranches are of ...

Higher tranches carry less risk than lower tranches ... assets into a security that can then be sold to investors. The MBS was first created by trader Lew Ranieri in the early 1980s.

Excess cash flow will pay timely interest and protect against realized losses in the rated certificates before being paid out ...

Servicers—Citadel, NewRez and Selene Finance—will not advance any delinquent principal and interest. Eventually, that should ...

The fund features an array of agency-backed mortgages and CMO tranches but also includes nonagency-backed MBS to help differentiate it from peers. The team uses a combination of tools such as ...

Higher tranches carry less risk than lower tranches ... assets into a security that can then be sold to investors. The MBS was first created by trader Lew Ranieri in the early 1980s.