San Antonio Business Daily

How can I buy these risky mortgage backed securities I keep hearing about?

Supposedly, investors who invested in these mortage backed securities are taking a bath, and the securities have declined big time, right? Well, these securities must have some value, I mean not every loan is defaulting, and even the ones that are are backed by homes with some real value. So I figure since everyone is freaking out about these securities, they must be really cheap now. How can I invest in them at today's sale prices?

Public Comments

1. go to any commercial bank or brokerage house...open a account///////////// tell them what you want to buy and do it...........
2. They are sold in 'packages' of (at least) a few million $$'s at a time ..... there MAY be some specialist Funds that invest in this type of security .. however you might do better to simply buy Bank shares or property funds direct :-)
3. These MBS trade in units of several million dollars. You can't invest $10,000. Also, it requires a significant amount of back office support to track each individual mortgage in the portfolio and account for payments, prepayments, pay offs, etc.